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Voluntary agreements with Industries - participation incentives with industry-wide targets: a comment

Author

Listed:
  • Hubert Stahn

    (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

  • Anne-Sarah Chiambretto

    (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier)

Abstract

This comment reexamines the problem of free-riding in pre-emptive collective environmental voluntary agreements (VA) analysed by Dawson and Segerson in the context of VAs with a global emission target and a pigouvian tax used as a threat. Completely remaining in the authors' framework, we here reconsider their results about efficiency. While they claim it provides the optimal amount of environmental quality but inefficiently, we show that there exists an optimal threat under which the equilibrium of the game is a cost-effective VA. This result gives an additional indication on the way VAs should be used to be efficient.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Hubert Stahn & Anne-Sarah Chiambretto, 2011. "Voluntary agreements with Industries - participation incentives with industry-wide targets: a comment," Post-Print hal-05480455, HAL.
    • Handle: RePEc:hal:journl:hal-05480455
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    Cited by:

    1. Anne-Sarah Chiambretto & Hubert Stahn, 2017. "Voluntary Management of Fisheries under an Uncertain Background Legislative Threat," AMSE Working Papers 1712, Aix-Marseille School of Economics, France.
    2. Stahn, Hubert, 2026. "Voluntary management of fisheries under the threat of uncertain legislation," Ecological Economics, Elsevier, vol. 239(C).

    More about this item

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents

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