Carrots and Sticks in Private Climate Governance

Jonathan M. Gilligan, Carrots and Sticks in Private Climate Governance, 6 Texas A&M Law Review, 179 (2018).

20 Pages Posted: 8 Dec 2018

See all articles by Jonathan M. Gilligan

Jonathan M. Gilligan

Vanderbilt University - Department of Earth and Environmental Sciences; Department of Civil and Environmental Engineering; Vanderbilt Institute for Energy and Environment

Date Written: June 11, 2018

Abstract

When public governance fails to address important environmental threats — such as climate change — private governance by firms, not-for-profits, individuals, and households can produce significant reductions in greenhouse gas emissions. Private governance can take the form of either a carrot or a stick, using incentives or punishments. Shareholder activism as a form of private governance of corporations has largely been confrontational, leading most climate-related actions to fail. This Article examines the potential for private governance to take a more collaborative approach and to frame shareholder engagement with management in terms of opportunity. It also examines private governance successes at reducing household emissions and finds that these too emphasize making it attractive and convenient for households to act.

Keywords: Private Governance, ESG, Institutional Investor, Climate Change, Shareholder Activism, Private Environmental Governance

JEL Classification: K32, Q54, G32

Suggested Citation

Gilligan, Jonathan M., Carrots and Sticks in Private Climate Governance (June 11, 2018). Jonathan M. Gilligan, Carrots and Sticks in Private Climate Governance, 6 Texas A&M Law Review, 179 (2018).. Available at SSRN: https://ssrn.com/abstract=3284035 or http://dx.doi.org/10.2139/ssrn.3284035

Jonathan M. Gilligan (Contact Author)

Vanderbilt University - Department of Earth and Environmental Sciences ( email )

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HOME PAGE: http://https://www.jonathangilligan.org/

Department of Civil and Environmental Engineering ( email )

2301 Vanderbilt Place
Nashville, TN 37240
United States

Vanderbilt Institute for Energy and Environment ( email )

2301 Vanderbilt Place
Nashville, TN 37240
United States

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