Environmental Effectiveness of Voluntary Approaches: Does the Number of Participants Matter?
CESAER Working Paper No. 2004/2
10 Pages Posted: 9 May 2005
Date Written: 2004
A poorly-selected level of pollution per firm can lead to a sub-optimal net effect on the environment. We define the optimal individual pollution level required for participants to maximize overall environmental effectiveness. We stress several implications for economic policy.
Keywords: Voluntary instruments, Environmental effectiveness, Environmental policy
JEL Classification: K32, Q28
Suggested Citation: Suggested Citation