A Bargaining Model of Voluntary Environmental Agreements
Data
01.01.2000
01.01.2000
Autori
Paola Manzini
Publisher
Climate Change and Sustainable Development
Climate Change and Sustainable Development
Editor
Carlo Carraro
Carlo Carraro
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.