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Coping with Private Lobbies in Industrial and Product Safety Regulation: A Literature Survey

Author

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  • Julien Jacob
  • Caroline Orset

Abstract

This literature review sheds light on the role of marketing authorisations and liabilities in controlling industry lobby behaviour aimed at enhancing the lobbyists' private interest to the detriment of the public interest. We present two political tools available to public authorities, marketing authorisation and liabilities (civil and criminal) to regulate firms that market products that could be harmful to society. We draw on the economic literature and contributions that study how these policy tools can be used to achieve three main objectives: providing incentives for risk mitigation, fostering innovation and the acquisition of information on unclear risks, and avoiding collusion between public bodies and the companies being regulated. We conclude with a brief discussion of the areas that require more in-depth research on this topic.

Suggested Citation

  • Julien Jacob & Caroline Orset, 2022. "Coping with Private Lobbies in Industrial and Product Safety Regulation: A Literature Survey," International Review of Environmental and Resource Economics, now publishers, vol. 16(2), pages 171-227, November.
    • Handle: RePEc:now:jirere:101.00000144
    DOI: 10.1561/101.00000144
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    References listed on IDEAS

    as
    1. Kahan, Dan M, 1998. "Social Meaning and the Economic Analysis of Crime," The Journal of Legal Studies, University of Chicago Press, vol. 27(2), pages 609-622, June.
    2. Schmitz, Patrick W., 2000. "On the joint use of liability and safety regulation," International Review of Law and Economics, Elsevier, vol. 20(3), pages 371-382, September.
    3. Immordino, Giovanni & Pagano, Marco & Polo, Michele, 2011. "Incentives to innovate and social harm: Laissez-faire, authorization or penalties?," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 864-876, August.
    4. Nauro Campos & Francesco Giovannoni, 2007. "Lobbying, corruption and political influence," Public Choice, Springer, vol. 131(1), pages 1-21, April.
    5. Hiriart, Yolande & Martimort, David & Pouyet, Jerome, 2004. "On the optimal use of ex ante regulation and ex post liability," Economics Letters, Elsevier, vol. 84(2), pages 231-235, August.
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    More about this item

    Keywords

    Industry risks; information acquisition; innovation; liability rules; lobby; scientific uncertainty; law and economics;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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