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Regulators and environmental groups

Better together or apart

Bibliographic Data

ID21691033
AuthorsAna Espinola-Arredondo (0000-0002-5983-9527, Washington State University), Eleni Stathopoulou (0000-0001-6543-3534, Nottingham Trent University), Félix Muñoz-García (0000-0001-6727-3618, Washington State University, corresponding author)
Year2022
Volume27
Issue1
Pages40-66
Publication date2022-02-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEnvironment and Development Economics (JOURNAL)
Journal identifiersISSN: 1355-770X • E-ISSN: 1469-4395
PublisherCambridge University Press (CUP) (PUBLISHER)
DOI10.1017/s1355770x21000024
OpenAlexW3134064903
LanguageEN
References cited28

This paper examines green alliances between environmental groups (EGs) and polluting firms, which have become more common in the last decades, and analyzes how they affect policy design. We first show that the activities of regulators and EGs are strategic substitutes, giving rise to free-riding incentives on both agents. Nonetheless, the presence of the EG yields smaller welfare benefits when firms are subject to regulation than when they are not. In addition, the introduction of environmental policy yields large welfare gains when the EG is absent but small benefits when the EG is already present

Business · Economics · Environmental policy · Environmental regulation · Incentive · Market economy · Microeconomics · Natural resource economics · Public economics · Welfare · Climate Change Policy and Economics · Energy, Environment, Economic Growth · Environmental Sustainability in Business

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