Local factors driving the adoption of municipal voluntary environmental programs: the case of Sweden’s eco-municipalities

In the past few decades voluntary environmental programs (VEPs) have gained traction as a tool to promote environmental performance beyond regulatory requirements. However, such programs have been largely studied in the context of the private sector with comparatively less consideration given to the possibility that local governments can also join such programs to improve both their reputation and environmental performance. We consider Sweden’s Eco-municipality association as an instance of a public sector VEP and find that, even after accounting for spatial dependence; environmental consciousness, municipality type, the level of education, industry structure and environmental vulnerability (as proxied by proximity to the coast) are significant determinants of the municipality’s decision to participate in the program.