Certification as a Rationale for Voluntary Agreements
I model the participation of firms in a voluntary agreement as a costly certification process whereby a firm informs the Regulator of its pollution intensity. Without this knowledge, the Regulator imposes the same tax on all firms in a heterogeneous industry, unduly hurting the clean ones with the lowest intensity. Certification allows clean firms to get a tax rebate. It also entails an informational externality as the dispersion of types decreases within the pool of non-participating firms, following an unraveling process. Because participation is a firm’s private decision, there is such a thing as a bad voluntary agreement.
|Date of creation:||2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 418-656-2131 poste 5098
Web page: http://www.create.ulaval.ca
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Na Li Dawson & Kathleen Segerson, 2003.
"Voluntary Agreements with Industries: Participation Incentives with Industry-wide Targets,"
2004-06, University of Connecticut, Department of Economics.
- Na Li Dawson & Kathleen Segerson, 2008. "Voluntary Agreements with Industries: Participation Incentives with Industry-Wide Targets," Land Economics, University of Wisconsin Press, vol. 84(1), pages 97-114.
- Heyes, Anthony G., 2005. "A signaling motive for self-regulation in the shadow of coercion," Journal of Economics and Business, Elsevier, vol. 57(3), pages 238-246.
- Simon Ashby & Swee Hoon Chuah & Robert Hoffmann, 2003.
"Industry Self-Regulation: A Game-Theoretic Typology of Strategic Voluntary Compliance,"
2, Nottingham University Business School.
- Simon Ashby & Swee-Hoon Chuah & Robert Hoffmann, 2004. "Industry Self-Regulation: A Game-Theoretic Typology of Strategic Voluntary Compliance," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 11(1), pages 91-106.
- Simon Ashby & Swee Hoon Chuah & Robert Hoffmann, 2003. "Industry Self-Regulation: A Game-Theoretic Typology of Strategic Voluntary Compliance," Occasional Papers 3, Industrial Economics Division.
- Segerson, Kathleen & Miceli, Thomas J., 1998. "Voluntary Environmental Agreements: Good or Bad News for Environmental Protection?," Journal of Environmental Economics and Management, Elsevier, vol. 36(2), pages 109-130, September.
When requesting a correction, please mention this item's handle: RePEc:lvl:creacr:2011-2. 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: (Johanne Perron)
If references are entirely missing, you can add them using this form.