IDEAS home Printed from https://ideas.repec.org/a/kap/policy/v57y2024i1d10.1007_s11077-023-09517-2.html
   My bibliography  Save this article

How foes become allies: the shifting role of business in climate politics

Author

Listed:
  • Irja Vormedal

    (Fritdjof Nansen Institute)

  • Jonas Meckling

    (University of California
    Harvard University)

Abstract

Firms often oppose costly public policy reforms—but under what conditions may they come to support such reforms? Previous scholarship has taken a predominantly static approach to the analysis of business positions. Here, we advance a dynamic theory of change in business policy positions that explains how business may shift from opposing to supporting new regulation over the course of multiple rounds of policymaking. We identify three sets of drivers and causal mechanisms behind business repositioning related to political, policy, and market change. We argue that political mechanisms can shift opposition to “strategic support” for reform, whereas policy and market mechanisms may shift opposition or strategic support toward “sincere support.” We examine the reconfiguration of business interests and policy positions in the context of three decades of US climate politics, focusing on the oil and gas, electricity, and auto sectors. Our dynamic theory of business positions moves beyond the dualism that views business as either opposing or supporting public interest regulation. We thus advance our understanding of why initial business opposition can incrementally turn into strategic or sincere support for policy reform.

Suggested Citation

  • Irja Vormedal & Jonas Meckling, 2024. "How foes become allies: the shifting role of business in climate politics," Policy Sciences, Springer;Society of Policy Sciences, vol. 57(1), pages 101-124, March.
  • Handle: RePEc:kap:policy:v:57:y:2024:i:1:d:10.1007_s11077-023-09517-2
    DOI: 10.1007/s11077-023-09517-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11077-023-09517-2
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s11077-023-09517-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kennard, Amanda, 2020. "The Enemy of My Enemy: When Firms Support Climate Change Regulation," International Organization, Cambridge University Press, vol. 74(2), pages 187-221, April.
    2. Cornelia Woll, 2008. "Firm Interests: How Governments Shape Business Lobbying on Global Trade," Post-Print hal-02183956, HAL.
    3. Matthew Lockwood, 2022. "Policy feedback and institutional context in energy transitions," Policy Sciences, Springer;Society of Policy Sciences, vol. 55(3), pages 487-507, September.
    4. Irja Vormedal & Lars H. Gulbrandsen & Jon Birger Skjærseth, 2020. "Big Oil and Climate Regulation: Business as Usual or a Changing Business?," Global Environmental Politics, MIT Press, vol. 20(4), pages 143-166, Autumn.
    5. Colgan, Jeff D. & Green, Jessica F. & Hale, Thomas N., 2021. "Asset Revaluation and the Existential Politics of Climate Change," International Organization, Cambridge University Press, vol. 75(2), pages 586-610, February.
    6. James Meadowcroft, 2009. "What about the politics? Sustainable development, transition management, and long term energy transitions," Policy Sciences, Springer;Society of Policy Sciences, vol. 42(4), pages 323-340, November.
    7. Culpepper Pepper D., 2015. "Structural power and political science in the post-crisis era," Business and Politics, De Gruyter, vol. 17(3), pages 391-409, October.
    8. Peter Newell, 2019. "Trasformismo or transformation? The global political economy of energy transitions," Review of International Political Economy, Taylor & Francis Journals, vol. 26(1), pages 25-48, January.
    9. Matthew Paterson, 2020. "Climate change and international political economy: between collapse and transformation," Review of International Political Economy, Taylor & Francis Journals, vol. 28(2), pages 394-405, October.
    10. Jorge Rivera & Jennifer Oetzel & Peter deLeon & Mark Starik, 2009. "Business responses to environmental and social protection policies: toward a framework for analysis," Policy Sciences, Springer;Society of Policy Sciences, vol. 42(1), pages 3-32, February.
    11. Jessica Green & Jennifer Hadden & Thomas Hale & Paasha Mahdavi, 2022. "Transition, hedge, or resist? Understanding political and economic behavior toward decarbonization in the oil and gas industry," Review of International Political Economy, Taylor & Francis Journals, vol. 29(6), pages 2036-2063, November.
    12. Grace Skogstad, 2020. "Mixed feedback dynamics and the USA renewable fuel standard: the roles of policy design and administrative agency," Policy Sciences, Springer;Society of Policy Sciences, vol. 53(2), pages 349-369, June.
    13. David L. Levy & Daniel Egan, 1998. "Capital Contests: National and Transnational Channels of Corporate Influence on the Climate Change Negotiations," Politics & Society, , vol. 26(3), pages 337-361, September.
    14. Moravcsik, Andrew, 1997. "Taking Preferences Seriously: A Liberal Theory of International Politics," International Organization, Cambridge University Press, vol. 51(4), pages 513-553, October.
    15. Héritier, Adrienne & Eckert, Sandra, 2008. "New Modes of Governance in the Shadow of Hierarchy: Self-regulation by Industry in Europe," Journal of Public Policy, Cambridge University Press, vol. 28(1), pages 113-138, April.
    16. Milner, Helen V. & Yoffie, David B., 1989. "Between free trade and protectionism: strategic trade policy and a theory of corporate trade demands," International Organization, Cambridge University Press, vol. 43(2), pages 239-272, April.
    17. Marvel, Howard P, 1977. "Factory Regulation: A Reinterpretation of Early English Experience," Journal of Law and Economics, University of Chicago Press, vol. 20(2), pages 379-402, October.
    18. Vormedal Irja, 2011. "From Foe to Friend? Business, the Tipping Point and U.S. Climate Politics," Business and Politics, De Gruyter, vol. 13(3), pages 1-31, October.
    19. René Bohnsack & Ans Kolk & Jonatan Pinkse & Christina M. Bidmon, 2020. "Driving the electric bandwagon: The dynamics of incumbents' sustainable innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 29(2), pages 727-743, February.
    20. Andrew Jordan & Elah Matt, 2014. "Designing policies that intentionally stick: policy feedback in a changing climate," Policy Sciences, Springer;Society of Policy Sciences, vol. 47(3), pages 227-247, September.
    21. Carlota Perez, 2009. "Technological revolutions and techno-economic paradigms," The Other Canon Foundation and Tallinn University of Technology Working Papers in Technology Governance and Economic Dynamics 20, TUT Ragnar Nurkse Department of Innovation and Governance.
    22. Malhotra, Neil & Monin, Benoît & Tomz, Michael, 2019. "Does Private Regulation Preempt Public Regulation?," American Political Science Review, Cambridge University Press, vol. 113(1), pages 19-37, February.
    23. Tobias S. Schmidt & Sebastian Sewerin, 2017. "Technology as a driver of climate and energy politics," Nature Energy, Nature, vol. 2(6), pages 1-3, June.
    24. Culpepper, Pepper D., 2015. "Structural power and political science in the post-crisis era," Business and Politics, Cambridge University Press, vol. 17(3), pages 391-409, October.
    25. Kelly Levin & Benjamin Cashore & Steven Bernstein & Graeme Auld, 2012. "Overcoming the tragedy of super wicked problems: constraining our future selves to ameliorate global climate change," Policy Sciences, Springer;Society of Policy Sciences, vol. 45(2), pages 123-152, June.
    26. Jonas Meckling & Jonas Nahm, 2018. "When do states disrupt industries? Electric cars and the politics of innovation," Review of International Political Economy, Taylor & Francis Journals, vol. 25(4), pages 505-529, July.
    27. Robert J. Brulle, 2018. "The climate lobby: a sectoral analysis of lobbying spending on climate change in the USA, 2000 to 2016," Climatic Change, Springer, vol. 149(3), pages 289-303, August.
    28. Jonas Meckling, 2015. "Oppose, Support, or Hedge? Distributional Effects, Regulatory Pressure, and Business Strategy in Environmental Politics," Global Environmental Politics, MIT Press, vol. 15(2), pages 19-37, May.
    29. Vormedal, Irja, 2011. "From Foe to Friend? Business, the Tipping Point and U.S. Climate Politics," Business and Politics, Cambridge University Press, vol. 13(3), pages 1-29, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Downie, Christian, 2017. "Business actors, political resistance, and strategies for policymakers," Energy Policy, Elsevier, vol. 108(C), pages 583-592.
    2. Irja Vormedal & Lars H. Gulbrandsen & Jon Birger Skjærseth, 2020. "Big Oil and Climate Regulation: Business as Usual or a Changing Business?," Global Environmental Politics, MIT Press, vol. 20(4), pages 143-166, Autumn.
    3. Sebastian Sewerin & Daniel Béland & Benjamin Cashore, 2020. "Designing policy for the long term: agency, policy feedback and policy change," Policy Sciences, Springer;Society of Policy Sciences, vol. 53(2), pages 243-252, June.
    4. Nicolas Schmid & Leonore Haelg & Sebastian Sewerin & Tobias S. Schmidt & Irina Simmen, 2021. "Governing complex societal problems: The impact of private on public regulation through technological change," Regulation & Governance, John Wiley & Sons, vol. 15(3), pages 840-855, July.
    5. Roberts, Cameron & Geels, Frank W., 2019. "Conditions for politically accelerated transitions: Historical institutionalism, the multi-level perspective, and two historical case studies in transport and agriculture," Technological Forecasting and Social Change, Elsevier, vol. 140(C), pages 221-240.
    6. Daniel Rosenbloom & Adrian Rinscheid, 2020. "Deliberate decline: An emerging frontier for the study and practice of decarbonization," Wiley Interdisciplinary Reviews: Climate Change, John Wiley & Sons, vol. 11(6), November.
    7. Carol Hager & Nicole Hamagami, 2020. "Local Renewable Energy Initiatives in Germany and Japan in a Changing National Policy Environment," Review of Policy Research, Policy Studies Organization, vol. 37(3), pages 386-411, May.
    8. Geels, Frank W. & Ayoub, Martina, 2023. "A socio-technical transition perspective on positive tipping points in climate change mitigation: Analysing seven interacting feedback loops in offshore wind and electric vehicles acceleration," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    9. Edmondson, Duncan L. & Kern, Florian & Rogge, Karoline S., 2019. "The co-evolution of policy mixes and socio-technical systems: Towards a conceptual framework of policy mix feedback in sustainability transitions," Research Policy, Elsevier, vol. 48(10).
    10. Christoph H. Stefes & Carol Hager, 2020. "Resistance to Energy Transitions," Review of Policy Research, Policy Studies Organization, vol. 37(3), pages 286-291, May.
    11. Jonas Meckling, 2019. "Governing renewables: Policy feedback in a global energy transition," Environment and Planning C, , vol. 37(2), pages 317-338, March.
    12. Jonas Meckling, 2015. "Oppose, Support, or Hedge? Distributional Effects, Regulatory Pressure, and Business Strategy in Environmental Politics," Global Environmental Politics, MIT Press, vol. 15(2), pages 19-37, May.
    13. Matthew Lockwood, 2022. "Policy feedback and institutional context in energy transitions," Policy Sciences, Springer;Society of Policy Sciences, vol. 55(3), pages 487-507, September.
    14. Steven Bernstein & Matthew Hoffmann, 2018. "The politics of decarbonization and the catalytic impact of subnational climate experiments," Policy Sciences, Springer;Society of Policy Sciences, vol. 51(2), pages 189-211, June.
    15. Hedeler, Barbara & Hellsmark, Hans & Söderholm, Patrik, 2023. "Policy mixes and policy feedback: Implications for green industrial growth in the Swedish biofuels industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 173(C).
    16. Daniel Witte, 2020. "Business for Climate: A Qualitative Comparative Analysis of Policy Support from Transnational Companies," Global Environmental Politics, MIT Press, vol. 20(4), pages 167-191, Autumn.
    17. Dehler-Holland, Joris & Schumacher, Kira & Fichtner, Wolf, 2021. "Topic Modeling Uncovers Shifts in Media Framing of the German Renewable Energy Act," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 2(1).
    18. Kasper Ampe & Erik Paredis & Lotte Asveld & Patricia Osseweijer & Thomas Block, 2021. "Power struggles in policy feedback processes: incremental steps towards a circular economy within Dutch wastewater policy," Policy Sciences, Springer;Society of Policy Sciences, vol. 54(3), pages 579-607, September.
    19. Gavin Bridge & Ludger Gailing, 2020. "New energy spaces: Towards a geographical political economy of energy transition," Environment and Planning A, , vol. 52(6), pages 1037-1050, September.
    20. Zola Berger‐Schmitz & Douglas George & Cameron Hindal & Richard Perkins & Maria Travaille, 2023. "What explains firms' net zero adoption, strategy and response?," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5583-5601, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:policy:v:57:y:2024:i:1:d:10.1007_s11077-023-09517-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.