This paper studies the formation offorest policy when the government isinfluenced by an environmental lobbyand an industrial lobby representing anon-competitive wood processing industry.Government decides on forestconservation by way of restricting timberharvesting. Lobbying is modelledas a common agency game with differencesin the efficiency of lobbying. Acomparison of the political equilibriashows that an exporting forestindustry faces a stricter conservationrequirement than a forest industrywhose production is destined for domesticmarkets. If the industrial lobbyis more efficient than the environmentallobby, conservation is insufficientfrom the social point of view. However,conservation may be insufficienteven if the environmental lobby is moreefficient in lobbying than theindustrial lobby. This is because thelobbying effort of the environmentallobby also benefits consumers thatremain politically passive. Copyright Kluwer Academic Publishers 2004
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Volume (Year): 27 (2004) Issue (Month): 4 (April) Pages: 391-407 Download reference. The following formats are available: HTML
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Grossman, Gene M & Helpman, Elhanan, 1994.
"Protection for Sale,"
American Economic Review,
American Economic Association, vol. 84(4), pages 833-50, September.
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Gene M. Grossman & Elhanan Helpman, 1992.
"Protection For Sale,"
NBER Working Papers
4149, National Bureau of Economic Research, Inc.
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