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Polluters and Collective Action: Theory and Evidence

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  • Richard Damania

    ()
    (Department of Economics, Adelaide University)

  • Per G. Fredriksson

    ()
    (Department of Economics, Southern Methodist University)

  • Thomas Osang

    ()
    (Department of Economics, Southern Methodist University)

Abstract

We suggest a new perspective on firms' ability to organize collective action. We argue that industries that face a greater number of regulations have an easier time forming a lobby group and sustaining joint lobbying efforts. In particular, firms in industries that are pollution intensive, and therefore incur abatement costs, face an extra policy issue compared with other industries. The prediction that emerges from the theory is that more polluting industries should have greater levels of lobbying contributions. Using U.S. manufacturing sector data, we find empirical support for this hypothesis.

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Bibliographic Info

Article provided by Southern Economic Association in its journal Southern Economic Journal.

Volume (Year): 72 (2005)
Issue (Month): 1 (July)
Pages: 167–185

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Handle: RePEc:sej:ancoec:v:72:1:y:2005:p:167-185

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Web page: http://www.southerneconomic.org/
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Cited by:
  1. Drosdowski, Thomas, 2006. "On the Link Between Democracy and Environment," Hannover Economic Papers (HEP), Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät dp-355, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.

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