Voluntary- and Information-Based Approaches to Environmental Management: A Public Economics Perspective

Matthew Kotchen

Review of Environmental Economics and Policy, 2013, vol. 7, issue 2, 276-295

Abstract: Interest in decentralized approaches to environmental management has grown significantly in recent years. Along with the standard instruments of environmental policy--quantity, price, and technology regulations--is a growing number of voluntary--and information-based approaches (VIBAs) that includes more decentralized policies, programs, and market trends. This article offers a perspective on VIBAs through the lens of public economic theory. The unifying theme is that many VIBAs are based on the creation of impure public goods and/or clubs. The innovation of these arrangements is the way in which jointly produced private benefits effectively subsidize the voluntary provision of public goods. From this perspective, VIBAs can be viewed as a property rights approach because they privatize an aspect of public good provision in order to make such provision more incentive compatible with firm or individual preferences for decision making. Although VIBAs have the potential to promote environmental protection and economic efficiency, these outcomes are not assured. However, a more careful examination of the theoretical basis for VIBAs can help us identify the circumstances under which these approaches hold the greatest promise for efficient environmental policy. (JEL: H41, Q58) Copyright 2013, Oxford University Press.

Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
http://hdl.handle.net/10.1093/reep/ret012 (application/pdf)
Access to full text is restricted to subscribers.

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:oup:renvpo:v:7:y:2013:i:2:p:276-295

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Review of Environmental Economics and Policy is currently edited by Robert Stavins

More articles in Review of Environmental Economics and Policy from Association of Environmental and Resource Economists Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().