EconPapers    
Economics at your fingertips  
 

Pollution for Sale: Firms’ Characteristics and Lobbying Outcome

Dapeng Cai () and Jie Li ()
Additional contact information
Jie Li: Jinan University

Environmental & Resource Economics, 2020, vol. 77, issue 3, No 3, 539-564

Abstract: Abstract We consider how the attributes of individual firms may influence the lobbying outcome concerning the setting of the stringency of a costly environmental regulation. We show that when there is a strong asymmetry between firms, a clean firm may lobby to strengthen the regulation, while its dirty rival lobbies to weaken the regulation. Moreover, the lobbying process is asymmetric in that the clean firm finds it more difficult to reach its objectives: although only a sufficiently large clean firm can succeed in strengthening regulation, a relatively small dirty firm can successfully bend a regulation toward its own interest.

Keywords: Common agency; Corporate political activity (CPA); Emission standard; Lobbying; Pollution tax; Raising rivals’ costs (search for similar items in EconPapers)
JEL-codes: H25 L13 L51 Q58 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s10640-020-00507-z Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:enreec:v:77:y:2020:i:3:d:10.1007_s10640-020-00507-z

Ordering information: This journal article can be ordered from
http://www.springer. ... al/journal/10640/PS2

DOI: 10.1007/s10640-020-00507-z

Access Statistics for this article

Environmental & Resource Economics is currently edited by Ian J. Bateman

More articles in Environmental & Resource Economics from Springer, European Association of Environmental and Resource Economists Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2021-12-06
Handle: RePEc:kap:enreec:v:77:y:2020:i:3:d:10.1007_s10640-020-00507-z