Substantial amounts of money continue to be spent in OECD countries on measures to support agriculture, energy, transportation and industrial activities. Many of these support measures encourage the emission of environmentally harmful pollutants, the generation of waste, and the excessive use of...

"This paper develops a theory of voluntary provision of a public good in which a household's decision to engage in a form of environmentally friendly behavior is based on the desire to offset another behavior that is environmentally harmful. The model generates predictions about (1)...