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Performance Track's Postmortem: Lessons from the Rise and Fall of EPA's 'Flagship' Voluntary Program

87 Pages Posted: 25 Apr 2014 Last revised: 22 May 2014

Cary Coglianese

University of Pennsylvania Law School

Jennifer Nash

Harvard Business School

Date Written: 2014

Abstract

For nearly a decade, the United States Environmental Protection Agency (“EPA”) considered its National Environmental Performance Track to be its “flagship” voluntary program — even a model for transforming the conventional system of environmental regulation. Since Performance Track’s founding during the Clinton Administration, EPA officials repeatedly claimed that the program’s rewards attracted hundreds of the nation’s “top” environmental performers and induced these businesses to make significant environmental gains beyond legal requirements. Although EPA eventually disbanded Performance Track early in the Obama Administration, the program has been subsequently emulated by a variety of state and federal regulatory authorities. To discern lessons useful for similar voluntary programs, we report here the findings from a multipronged, multi-year research effort assessing business participation in Performance Track. We find no evidence to support the sweeping assertions EPA made about the program’s achievements. Facilities participating in Performance Track simply could not be shown to be top performers. Rather, what most distinguished these participants was a factor distinct from environmental quality, namely their propensity to engage in outreach with government and community groups. Furthermore, drawing on an extensive analysis of business participation in Performance Track and other EPA voluntary programs, we show how Performance Track faced inherent limitations in its ability to induce any dramatic environmental gains, making its model more of a poor substitute for the conventional regulatory system than a plausible means for the system’s transformation.

Keywords: Environmental law and policy, environmental economics, empirical legal studies, public policy analysis, corporate social responsibility, voluntary programs, OSHA, EPA, Environmental Protection Agency, Climate Leaders, Energy Star, National Environmental Performance Track, substitutes for regulation

JEL Classification: I18, K23, K32, L50, M38

Suggested Citation

Coglianese, Cary and Nash, Jennifer, Performance Track's Postmortem: Lessons from the Rise and Fall of EPA's 'Flagship' Voluntary Program (2014). Harvard Environmental Law Review, Vol. 38, Pg. 1, 2014; U of Penn, Inst for Law & Econ Research Paper No. 14-18. Available at SSRN: https://ssrn.com/abstract=2428264

Cary Coglianese (Contact Author)

University of Pennsylvania Law School ( email )

3501 Sansom Street
Philadelphia, PA 19104
United States
215-898-6867 (Phone)

HOME PAGE: http://www.law.upenn.edu/coglianese

Jennifer Nash

Harvard Business School ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

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