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Free riding in voluntary environmental programs: The case of the U.S. EPA WasteWise program

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  • Magali Delmas

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  • Arturo Keller

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    Abstract

    Voluntary Environmental Programs (VPs) involving industry and regulatory agencies have emerged as the promise of the future in environmental policy circles. Although the number of these agreements is increasing in OECD countries, there are still concerns about their effectiveness; in particular that “free-ridingâ€\x9D behavior may be difficult to avoid within VPs. Free riding occurs when one firm benefits from the actions of another without sharing the costs. Free-riding behavior may undermine the credibility of VPs and therefore their viability. Our paper focuses on understanding the factors that favor or hamper free-riding behavior in VPs. Our analysis is based on the case of the WasteWise program that was established by the U.S. Environmental Protection Agency to reduce municipal solid waste. Copyright Springer Science + Business Media, Inc. 2005

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    File URL: http://hdl.handle.net/10.1007/s11077-005-6592-8
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    Bibliographic Info

    Article provided by Springer in its journal Policy Sciences.

    Volume (Year): 38 (2005)
    Issue (Month): 2 (September)
    Pages: 91-106

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    Handle: RePEc:kap:policy:v:38:y:2005:i:2:p:91-106

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    Web page: http://www.springerlink.com/link.asp?id=102982

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    1. Suzanne Scotchmer & Joel Slemrod, 1988. "Randomness in Tax Enforcement," NBER Working Papers 2512, National Bureau of Economic Research, Inc.
    2. L. Wade, 1988. "Review," Public Choice, Springer, vol. 58(1), pages 99-100, July.
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    Cited by:
    1. Ferrara, Andreas & Lange, Ian, 2011. "Voluntary Programs to Encourage Diffusion: The Case of the Combined Heat-and-Power Partnership," Stirling Economics Discussion Papers 2011-16, University of Stirling, Division of Economics.
    2. Blanco, Ester & Lozano, Javier & Rey-Maquieira, Javier, 2009. "A dynamic approach to voluntary environmental contributions in tourism," Ecological Economics, Elsevier, vol. 69(1), pages 104-114, November.
    3. Arimura, Toshi H. & Darnall, Nicole & Katayama, Hajime, 2011. "Is ISO 14001 a gateway to more advanced voluntary action? The case of green supply chain management," Journal of Environmental Economics and Management, Elsevier, vol. 61(2), pages 170-182, March.
    4. Esther Blanco, 2011. "A social-ecological approach to voluntary environmental initiatives: the case of nature-based tourism," Policy Sciences, Springer, vol. 44(1), pages 35-52, March.
    5. Kalim Shah & Jorge Rivera, 2013. "Do industry associations influence corporate environmentalism in developing countries? Evidence from Trinidad and Tobago," Policy Sciences, Springer, vol. 46(1), pages 39-62, March.
    6. Liu, Zugang (Leo) & Anderson, Trisha D. & Cruz, Jose M., 2012. "Consumer environmental awareness and competition in two-stage supply chains," European Journal of Operational Research, Elsevier, vol. 218(3), pages 602-613.
    7. Berrone, Pascual & Gelabert, Liliana & Fosfuri, Andrea, 2009. "The impact of symbolic and substantive actions on environmental legitimacy," IESE Research Papers D/778, IESE Business School.
    8. Darnall, Nicole & Seol, Inshik & Sarkis, Joseph, 2009. "Perceived stakeholder influences and organizations' use of environmental audits," Accounting, Organizations and Society, Elsevier, vol. 34(2), pages 170-187, February.

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