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The Handbook of Environmental Voluntary Agreements

Design, Implementation and Evaluation Issues

  • Book
  • © 2005

Overview

  • A comprehensive economic theory of environmental voloutary agreements, which takes into account the variety of forms and application situations characterizing this environmental policy instrument
  • Provides common methodologies, implementation rules and evalutation criteria for researchers, policy makers and business operators in the use of environmental voluntary agreements

Part of the book series: Environment & Policy (ENPO, volume 43)

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Table of contents (17 chapters)

  1. Voluntary Agreements in Environmental Policy

  2. The Poltical Economy of Voluntary Agreements

  3. The European and the American Approach to Environmental Voluntary Agreements

  4. Design, Negotiation and Implementation of Environmental Voluntary Agreements: National and Sector Approaches

  5. Evaluation of Environmental Voluntary Agreements

  6. Environmental Voluntary Agreements in Policy Mixes

Keywords

About this book

EDOARDOCROCI IEFE - Università Bocconi, Milano, Italy Voluntary approaches in environmental policy represent a “third wave” of regulation in the environmental field. “Command and control” was the first wave. Its core is based on uniform emission standards, the respect of which needs to be enforced through extensive monitoring and severe sanctions. The expected cost of sanction for non-compliance, calculated as its amount multiplied for the probability to be caught, must be superior to the benefits of non-compliance, in order to let the sanction be effective. As the benefits of non-compliance can vary among firms, sanctions need to be very high in order to be effective. In fact sanctions are ordinary correlated to environmental damage and not to the benefits of non-compliance. But very high sanctions can be difficult to enforce as they appear unfair and can lead to dramatic consequences on firms and workers, up to shut-downs of plants. Ambient standards reduce these problems, but oblige the regulator to know a huge amount of information, regarding the specific contribution of each polluter to the polluted body. Information is difficult to obtain because of asymmetric information and costly to produce because it requires large and skilled regulating and enforcing organizations. Nevertheless complex regulation is the base of any environmental policy framework, as it allows the policy maker to fully exercise its power of composition of various interests in a relatively transparent way. Economic instruments were the second wave.

Editors and Affiliations

  • Vice Director of IEFE, Università Bocconi, Milan, Italy

    Edoardo Croci

Bibliographic Information

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