This paper analyses the conditions under which a group of firms has the incentive to sign a Voluntary Agreement (VA) in order to control its emission flows even in the presence of free-riding by other firms in the industry. For the purpose of this paper it is assumed that free-riders cannot be...

Increasingly popular tailored regulation (TR) initiatives like EPA's Project XL allow plants to voluntarily substitute site-specific environmental performance standards for command-and-control regulations that dictate pollution abatement strategies. TR can significantly reduce participants'...

As part of a recent trend toward more cooperative relations between regulators and industry, novel government programs are encouraging firms to monitor their own regulatory compliance and voluntarily report their own violations. In this study, we examine how regulatory enforcement activities...

Despite the large use of the notion of voluntary approaches, economic literature is generally unassuming their definitions. Discussions about definitions are not unimportant quibbles over words and can change the way we think. Do voluntary approaches constitute a new form of regulation? The...

We extend the economic theory of regulation to allow for strategic self-regulation that preempts political action. When political "entry" is costly for consumers, firms can deter it through voluntary restraints. Unlike standard entry models, deterrence is achieved by overinvesting to raise the...

This paper investigates the existing Italian regulation regarding theso-called "administration by agreements" and the possibility to adapt the existing legal system to voluntary agreements in the environmental field in the light of the European guidelines on this issue. The research consists of...

This study analyzes the initial implementation of the Sustainable Slopes Program a voluntary environmental initiative established by the U.S. National Ski Areas Association in partnership with federal and state government agencies. Our findings indicate that participation of western ski areas in...

A poorly-selected level of pollution per firm can lead to a sub-optimal net effect on the environment. We define the optimal individual pollution level required for participants to maximize overall environmental effectiveness. We stress several implications for economic policy

The public policy literature has paid little attention to evaluating the ability of voluntary environmental programs to generate economic benefits for firms. Yet, given their voluntary nature, provision of economic benefits to firms is a necessary condition for these programs to become effective...

The appeal of voluntary environmental programs (VEPs) lies in their promise to mutually serve government, industry, and environmental interests since they can reduce administrative burdens, provide flexibility to decide how to implement environmental improvements, and work toward superior...