Managing Environmental Risks through Private Sector Cooperation: Cooperation: Theory, Experience and a Case Study of the California Code of Sustainable Winegrowing Practices

There is growing interest in voluntary agreements as an economic policy tool for managing environmental risks. Numerous studies have been published about the theory of such arrangements, how they work, and what they accomplish. They demonstrate that voluntary agreements can create value for both regulators and firms. Little has been written, however, that analyzes various voluntary arrangements in the winegrowing sector. The evidence accumulated from other sectors indicates that efforts in the winegrowing sector may be following an appropriate path for attaining management objectives. The California Sustainable Winegrowing Practices (SWP) project indicates a number of strategies that may be useful in developing voluntary agreements in other regions. The recommendations include using an integrated approach with the initiative from the bottom toward the top, involving interest groups early in the process, and evaluating the need for a certification program.