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Environmental Protection: A Theory of Direct and Indirect Competition for Political Influence

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  • Zhihao Yu

Abstract

How is it that environmental groups can have a strong impact on environmental policy but without much lobbying? This paper develops a model of "direct" (lobbying the government) and "indirect" (persuading the public) competition for political influence and finds that they are complementary. However, an increase in the effectiveness of public persuasion, or a rise of public environmental awareness, induces substitution between the two. The findings establish that the empirical phenomenon of lack of political contribution from environmental groups may not be related to financial constraints, but to their greater effectiveness in public persuasion and growing public environmental awareness. Copyright 2005, Wiley-Blackwell.

Suggested Citation

  • Zhihao Yu, 2005. "Environmental Protection: A Theory of Direct and Indirect Competition for Political Influence," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(1), pages 269-286.
    • Handle: RePEc:oup:restud:v:72:y:2005:i:1:p:269-286
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    File URL: http://hdl.handle.net/10.1111/0034-6527.00332
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    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • F2 - International Economics - - International Factor Movements and International Business

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