Recognizing that people value employment not only to earn income to satisfy their consumption needs, but also as a means to gain socio-psychological (nonpecuniary) benefits, we show that once nonpecuniary work incentives are incorporated into standard labor supply theory, (i) the wage rate...

We develop a multiple-firm model of an industry's voluntary adoption of environmental protection measures to achieve a predetermined industry-wide emissions reduction target under an explicit threat of imposition of an emissions tax. We examine the free-riding incentive of individual firms and...

This paper analyses the conditions under which a group of firms has the incentive to sign a Voluntary Agreement (VA) in order to control its emission flows even in the presence of free-riding by other firms in the industry. For the purpose of this paper it is assumed that free-riders cannot be...

The joint evolution of participating and complying firms in a public VA, along with the evolution of the pollution stock is examined. Replicator dynamics modeling participation and compliance are combined with pollution stock dynamics. Fast-slow selection dynamics are used to capture the fact...

The paper analyzes the welfare properties of voluntary agreements (VA) with polluters, when they are obtained under the legislative threat of an alternative stricter policy option. In the model, the threat is an abatement quota. Both the threat and its probability of implementation are...

Polluting firms must have the willingness, opportunity, and capacity or capability to undertake technological changes to improve their environmental performance. These changes could involve the adoption (diffusion) of already-proven technologies, or require incremental to radical innovation....

Voluntary agreements are an important environmental policy instrument. In the paper some examples are discussed and the structure and mechanisms of voluntary agreements are analyzed using a strategic game approach. In the simple strategic game with only one abatement technology, there is a...

This paper deals with the cost efficiency of target-based voluntary agreements for reducing industrial pollution. These agreements are contracts between a public body and an industrial association including the collective commitment of the industrial sector to reach a pollution abatement...

Voluntary agreements in various forms are being increasingly regarded as an instrument to substitute or complement regulating and pricing instruments. As, from a theoretical point of view, this instrument has strong proponents and opponents, it is important to make a careful analysis of the...

Recently, attention has turned to the use of voluntary agreements between regulators and polluters as an alternative to mandatory approaches based on regulation or legislation. Voluntary agreements have the potential to reduce compliance costs by allowing greater flexibility and to reduce...