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Environmental Protection: A Theory of Direct and Indirect Competition for Political Influence

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Abstract

How is it that environmental groups can have a strong impact on environmental policy but without much lobbying? This paper develops a model of ‘direct’ (lobbying the government) and ‘indirect’ (persuading the public) competition for political influence and finds that they are complementary. However, an increase in the effectiveness of public persuasion, or a rise of public environmental awareness, induces substitution between the two. The findings establish that the empirical phenomenon of lack of political contribution from environmental groups may not be related to financial constraints, but to their greater effectiveness in public persuasion and the growing public environmental awareness.

Suggested Citation

  • Zhihao Yu, 2003. "Environmental Protection: A Theory of Direct and Indirect Competition for Political Influence," Carleton Economic Papers 03-07, Carleton University, Department of Economics, revised Jan 2005.
    • Handle: RePEc:car:carecp:03-07
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    File URL: http://www1.carleton.ca/economics/research/working-papers/carleton-economic-papers-cep-2001-2010/
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    Keywords

    Public Persuasion; Lobbying; Political Advertising; Environmental Policy.;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • F2 - International Economics - - International Factor Movements and International Business

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