Regulators and environmental groups: better together or apart?

Espinola-Arredondo, A., Stathopoulou, E. ORCID: 0000-0001-6543-3534 and Munoz-Garcia, F., 2021. Regulators and environmental groups: better together or apart? Environment and Development Economics. ISSN 1355-770X

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This paper examines green alliances between environmental groups (EGs) and polluting firms, which have become more common in the last decades, and analyzes how they affect policy design. We first show that the activities of regulators and EGs are strategic substitutes, giving rise to free-riding incentives on both agents. Nonetheless, the presence of the EG yields smaller welfare benefits when firms are subject to regulation than when they are not. In addition, the introduction of environmental policy yields large welfare gains when the EG is absent but small benefits when the EG is already present.

Item Type: Journal article
Publication Title: Environment and Development Economics
Creators: Espinola-Arredondo, A., Stathopoulou, E. and Munoz-Garcia, F.
Publisher: Cambridge University Press
Date: 9 March 2021
ISSN: 1355-770X
Divisions: Schools > Nottingham Business School
Record created by: Jonathan Gallacher
Date Added: 15 Mar 2021 11:44
Last Modified: 31 May 2021 15:05

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