Voluntary Environmental Agreements when Regulatory Capacity Is Weak
AbstractVoluntary agreements (VAs) negotiated between environmental regulators and industry are increasingly popular. However, little is known about whether they are likely to be effective in developing and transition countries, where local and federal environmental regulatory capacity is typically weak. We develop a dynamic theoretical model to examine the effect of VAs on investment in regulatory infrastructure and pollution abatement in such countries. We find that under certain conditions, VAs can improve welfare by generating more private-sector investment in pollution control and more public-sector investment in regulatory capacity than the status quo.
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Bibliographic InfoPaper provided by Resources For the Future in its series Discussion Papers with number dp-06-30.
Date of creation: 03 Jul 2006
Date of revision:
voluntary environmental regulation; developing country;
Find related papers by JEL classification:
- Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
This paper has been announced in the following NEP Reports:
- NEP-AGR-2006-09-03 (Agricultural Economics)
- NEP-ALL-2006-09-03 (All new papers)
- NEP-ENE-2006-09-03 (Energy Economics)
- NEP-ENV-2006-09-03 (Environmental Economics)
- NEP-REG-2006-09-03 (Regulation)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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