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Voluntary Environmental Agreements: Lessons on Effectiveness, Efficiency and Spillover Potential

Author

Listed:
  • de Vries, Frans P.
  • Nentjes, Andries
  • Odam, Neil

Abstract

Voluntary agreements (VAs) have been widely used in environmental policymaking over the past 20 years. This paper reviews relevant theoretical and empirical literature on VAs, assessing their performance in terms of effectiveness and efficiency. Effectiveness is evaluated on three criteria: (i) effectiveness in setting the pollution abatement target, (ii) effectiveness in incentivising participation , and (iii) effectiveness in realizing the abatement target. Both static efficiency, in particular the allocation of abatement among participants in the VA, and dynamic efficiency, in particular the role of technology and informational spillovers, are evaluated. Finally, we identify gaps in the literature that provide opportunities for future research.

Suggested Citation

  • de Vries, Frans P. & Nentjes, Andries & Odam, Neil, 2012. "Voluntary Environmental Agreements: Lessons on Effectiveness, Efficiency and Spillover Potential," International Review of Environmental and Resource Economics, now publishers, vol. 6(2), pages 119-152, March.
    • Handle: RePEc:now:jirere:101.00000049
    DOI: 10.1561/101.00000049
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    Cited by:

    1. George Deltas & Donna Ramirez Harrington & Madhu Khanna, 2021. "The impact of management systems on technical change: the adoption of pollution prevention techniques," Economic Change and Restructuring, Springer, vol. 54(1), pages 171-198, February.
    2. Tannis Thorlakson, 2018. "A move beyond sustainability certification: The evolution of the chocolate industry's sustainable sourcing practices," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1653-1665, December.
    3. Jeroen van der Heijden, 2020. "Understanding voluntary program performance: Introducing the diffusion network perspective," Regulation & Governance, John Wiley & Sons, vol. 14(1), pages 44-62, January.
    4. Brouhle, Keith & Graham, Brad & Harrington, Donna Ramirez, 2013. "Innovation under the Climate Wise program," Resource and Energy Economics, Elsevier, vol. 35(2), pages 91-112.
    5. Kathleen Segerson, 2013. "Voluntary Approaches to Environmental Protection and Resource Management," Annual Review of Resource Economics, Annual Reviews, vol. 5(1), pages 161-180, June.
    6. Kentaro Florian Mayr & Paolo Agnolucci, 2023. "Heterogeneous Impacts in Voluntary Agreements: A Changes-in-Changes Approach to the UK Climate Change Agreements," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 86(3), pages 345-379, November.

    More about this item

    Keywords

    Voluntary agreements; Voluntary programs; Effectiveness; Efficiency; Abatement targets; Participation; Free-riding; Allocation; Spillovers;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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