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Private vs. Public Regulation: Political Economy of the International Environment

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Abstract

Minimum standards set by a ‘World Environmental Organisation’ (WEO) and NGO labelling are promoted as alternative approaches to international environmental protection. We explore the potential inter-play between these two approaches when the WEO is subject to pressure from producers. We find that if WEO and NGO schemes are mutually exclusive then the existence of an NGO ‘alternative’ increases industry resistance to WEO proposals and this may reduce welfare. If, however, the schemes are run in parallel, existence of the NGO lessens producer opposition to WEO activities. This allows the WEO to be ‘bolder’ in its proposals, which is good for welfare.

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Bibliographic Info

Paper provided by Department of Economics, Royal Holloway University of London in its series Royal Holloway, University of London: Discussion Papers in Economics with number 03/5.

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Length: 36 pages
Date of creation: Dec 2003
Date of revision: Dec 2003
Handle: RePEc:hol:holodi:0305

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Keywords: Biodiversity ; regulatory governance ; instrument choice;

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Cited by:
  1. Eftichios Sartzetakis & Anastasios Xepapadeas & Emmanuel Petrakis, . "The role of information provision as a policy instrument to supplement environmental taxes: Empowering consumers to choose optimally," DEOS Working Papers 1012, Athens University of Economics and Business.
  2. Lucie Bottega & Jenny De Freitas, 2009. "Public, private and nonprofit regulation for environmental quality," DEA Working Papers 33, Universitat de les Illes Balears, Departament d'Economía Aplicada.
  3. Arguedas, Carmen & Blanco, Esther, 2014. "On Fraud and Certification of Corporate Social Responsibility," Working Papers in Economic Theory 2014/02, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
  4. Patricia Crifo & Vanina Forget, 2013. "La responsabilité sociale et environnementale des entreprises : mirage ou virage ?," Working Papers hal-00830642, HAL.
  5. Chema Abderrazak & Adel Ben Youssef, 2009. "Multiplicity of eco-labels, competition, and the environment," Post-Print halshs-00937183, HAL.
  6. Thomas P. Lyon & John W. Maxwell, 2007. "Corporate Social Responsibility and the Environment: A Theoretical Perspective," Working Papers 2007-16, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
  7. Adel Ben Youssef & Rim Lahmandi-Ayed, 2008. "Eco-labelling, Competition and Environment: Endogenization of Labelling Criteria," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 41(2), pages 133-154, October.
  8. H. Eggert & M. Greaker, 2011. "Trade, GMOs and Environmental Risk: Are Current Policies Likely to Improve Welfare?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 48(4), pages 587-608, April.
  9. Soham Baksi & Pinaki Bose, 2007. "Credence Goods, Efficient Labelling Policies, and Regulatory Enforcement," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 37(2), pages 411-430, June.
  10. Cheng, Chu-Chuan & Lai, Yu-Bong, 2012. "Does a stricter enforcement policy protect the environment? A political economy perspective," Resource and Energy Economics, Elsevier, vol. 34(4), pages 431-441.
  11. Patricia Crifo & Vanina Forget, 2012. "The Economics of Corporate Social Responsibility: A Survey," Working Papers hal-00720640, HAL.
  12. Bonroy, O. & Constantatos, C., 2014. "On the economics of labels : how their introduction affects the functioning of markets and the welfare of all participants," Working Papers 2014-03, Grenoble Applied Economics Laboratory (GAEL).
  13. Bonroy, O. & Constantatos, C., 2013. "On the economics of labels : a review of the theoretical literature," Working Papers 2013-01, Grenoble Applied Economics Laboratory (GAEL).
  14. Buehler, B. & Schuett, F., 2012. "Certification and Minimum Quality Standards when Some Consumers are Uninformed," Discussion Paper 2012-040, Tilburg University, Tilburg Law and Economic Center.

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