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Lobbying, Public Persuasion, and Environmental Policy under Imperfect Competition


  • Guillaume Cheikbossian
  • Houda Hafidi


Lobbies have always been major players in the political game. Their actions range from influencing consumer beliefs to applying pressure on policymakers. This study attempts to analyze the impact of direct and indirect lobbying through public persuasion by interests groups on the stringency of the environmental policy. Following Yu (2005), we propose a micro-founded model with imperfect competition for a polluting good and that allows to derive the total welfare, government’s objective function, and resulting strategic interactions between interest groups. Our results reflect a more aggressive behavior in the public persuasion competition for the specialized green lobby. An increase in the representativeness of the green lobby leads to a more stringent environmental policy, but the opposite does not necessarily hold when the producer lobby becomes more powerful. Nevertheless, a more benevolent government sets a more stringent environmental policy only for lower values of the public’s initial environmental concern, prior to the persuasion competition.

Suggested Citation

  • Guillaume Cheikbossian & Houda Hafidi, 2022. "Lobbying, Public Persuasion, and Environmental Policy under Imperfect Competition," Annals of Economics and Statistics, GENES, issue 145, pages 91-116.
  • Handle: RePEc:adr:anecst:y:2022:i:145:p:91-116

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    Cited by:

    1. Kęstutis Peleckis, 2022. "Application of the Multicriteria Method Seeking to Assess Concentration, and Its Effects on Competition in the Manufacturing Sector," Sustainability, MDPI, vol. 14(19), pages 1-30, September.
    2. Donatella Gatti & Julien Vauday, 2023. "Environmental transition through social change and lobbying by citizens," Working Papers hal-04158754, HAL.
    3. Donatella Gatti & Julien Vauday, 2023. "Green cultural transition, environmental taxes, and collective lobbying by social groups of citizens," Working Papers 2023.03, FAERE - French Association of Environmental and Resource Economists.

    More about this item


    Direct Lobbying; Public Persuasion; Indirect Lobbying; Environmental Taxation; Specialized Lobbies;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions


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