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A Guide to Extracting Information from Environmental Pressure Groups

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  • Eric Nævdal
  • Richard Brazee

Abstract

This paper examines the relationship between environmental pressure groupsand environmental policy makers. Environmental pressure groups are assumedto possess valuable private information on environmental issues.Environmental pressure groups are also assumed to pursue their ownpreferences, which are only partially correlated with policy makers'preferences. A new aspect is that binding contracts with side payments arenot allowed, which accurately describes the interaction betweenenvironmental pressure groups and governments. It is shown that by choosingprobabilities of acting on environmental pressure groups' signals, adecision maker can force environmental pressure groups to reveal superiorinformation even in the absence of binding contracts. Copyright Kluwer Academic Publishers 2000

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  • Eric Nævdal & Richard Brazee, 2000. "A Guide to Extracting Information from Environmental Pressure Groups," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 16(1), pages 105-119, May.
    • Handle: RePEc:kap:enreec:v:16:y:2000:i:1:p:105-119
    DOI: 10.1023/A:1008389431896
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    1. Groves, Theodore & Ledyard, John O, 1977. "Optimal Allocation of Public Goods: A Solution to the "Free Rider" Problem," Econometrica, Econometric Society, vol. 45(4), pages 783-809, May.
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    Cited by:

    1. Anger, Niels & Böhringer, Christoph & Oberndorfer, Ulrich, 2008. "Public Interest vs. Interest Groups: Allowance Allocation in the EU Emissions Trading Scheme," ZEW Discussion Papers 08-023, ZEW - Leibniz Centre for European Economic Research.
    2. Niels Anger & Christoph Böhringer & Andreas Lange, 2015. "The political economy of energy tax differentiation across industries: theory and empirical evidence," Journal of Regulatory Economics, Springer, vol. 47(1), pages 78-98, February.
    3. Goodhue, Rachael E. & Gruere, Guillaume P. & Klonsky, Karen, 2002. "Public Preferences, Pressure Groups, And Public Policy Regarding Multifunctionality In Agriculture: Compatibility And Conflict," 2002 Annual meeting, July 28-31, Long Beach, CA 19595, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Anger, Niels & Böhringer, Christoph & Lange, Andreas, 2006. "Differentiation of Green Taxes: A Political-Economy Analysis for Germany," ZEW Discussion Papers 06-003, ZEW - Leibniz Centre for European Economic Research.

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