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Voluntary Agreements and Non-Verifiable Emissions

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  • Karine Nyborg

Abstract

If pollution is observable, but some emissions cannot be verified by court,voluntary agreements between a regulator and an industry may bewelfare-improving compared to second-best emission taxes. Such agreementsdiffer from direct regulation in a non-trivial way. The first-best optimummay be included in the set of possible agreements, even if it is notattainable using tax instruments. The non-verifiability may, for example, beassociated with delimitation problems in defining the pollution tax base. Copyright Kluwer Academic Publishers 2000

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  • Karine Nyborg, 2000. "Voluntary Agreements and Non-Verifiable Emissions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 17(2), pages 125-144, October.
    • Handle: RePEc:kap:enreec:v:17:y:2000:i:2:p:125-144
    DOI: 10.1023/A:1008313720592
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    References listed on IDEAS

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    1. Armin Schmutzler, 1996. "Pollution control with imperfectly observable emissions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 7(3), pages 251-262, April.
    2. Schmutzler, Armin & Goulder, Lawrence H., 1997. "The Choice between Emission Taxes and Output Taxes under Imperfect Monitoring," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 51-64, January.
    3. Amacher, Gregory S. & Malik, Arun S., 1996. "Bargaining in Environmental Regulation and the Ideal Regulator," Journal of Environmental Economics and Management, Elsevier, vol. 30(2), pages 233-253, March.
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    6. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
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    Cited by:

    1. Na Li Dawson & Kathleen Segerson, 2008. "Voluntary Agreements with Industries: Participation Incentives with Industry-Wide Targets," Land Economics, University of Wisconsin Press, vol. 84(1), pages 97-114.
    2. McEvoy, David M. & Stranlund, John K., 2007. "Costly Enforcement of Voluntary Environmental Agreements with Industries," Working Paper Series 7382, University of Massachusetts, Amherst, Department of Resource Economics.
    3. Liu, Xiaoou & Lopez, Rigoberto & Zhu, Chen, 2015. "Can Voluntary Nutrition Labeling Lead to a Healthier Food Market?," 2016 Allied Social Sciences Association (ASSA) Annual Meeting, January 3-5, 2016, San Francisco, California 212818, Agricultural and Applied Economics Association.
    4. Böhringer, Christoph & Frondel, Manuel, 2002. "Assessing Voluntary Commitments: Monitoring is Not Enough!," ZEW Discussion Papers 02-62, ZEW - Leibniz Centre for European Economic Research.

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