How to Win the Political Contest: A Monopolist vs. Environmentalists
This paper sheds light on the political economy of local energy politics both from a theoretical and an empirical perspective. First, a case study of a small town in Southern Germany (Schonau) is presented, where environmentalists have won the political contest against the regional energy monopolist and have founded an energy supply firm themselves. The different stages of the political process are explained and analysed. Second, a political economy model is developed, where environmentalists and a monopolistic utility firm confront each other both on the political and on the energy market. In the lobbying equilibrium the probability of the environmentalists' winning the game depends on the monopoly rent and the perceived social costs of energy production. It is shown that it is optimal for the monopolist to reduce his output below the monopolistic output. Finally, the winning strategy in the Schonau case is discussed in the light of the theoretical results of the paper. Copyright 2001 by Kluwer Academic Publishers
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
When requesting a correction, please mention this item's handle: RePEc:kap:pubcho:v:108:y:2001:i:3-4:p:273-93. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.