FEEM working papers "Note di lavoro" series
2000 .081

A Bargaining Model of Voluntary Environmental Agreements


Authors: Paola Manzini
Series: Climate Change and Sustainable Development
Editor: Carlo Carraro
Type: Journal
JEL: Journal of Public Economics

Abstract

We present an explicit model of firm-regulator negotiations in a market with several firms. We describe how the regulatory surplus is distributed between firms and regulator, and analyse the impact of various oligopoly parameters on the resulting level of environmental regulation. Our main result is that a "toughest firm principle" holds: the outcome of negotiations is essentially determined by the firm with the most aggressive attitude towards environmental control.

Download file
Download PDF file

FEEM Newsletter

Subscribe to stay connected.

Your personal data will be processed by Fondazione Eni Enrico Mattei. – data Controller – with the aim of emailing the FEEM newsletter. The use of Your email address is necessary for the implementation of the newsletter service. You are invited to read the Privacy Policy in order to obtain additional information about the protection of Your rights.

This Website uses technical cookies and cookie analytics, as well as “third party” profiling cookies.
If you close this banner or you decide to continue navigating on this Website, you express consent to the use of cookies. If you need additional information or you wish to express selective choices on the use of cookies, please refer to the   Cookie PolicyI agree