We analyze the determinants of environmental policy when two firms engage in two types of lobbying against a … restriction on allowed pollution: General lobbying increases the total amount of allowed pollution, which is beneficial for both … firms. Private lobbying increases the individual pollution standard of the lobbying firm, but has a negative or zero effect …

effect is stronger the more efficient is the lobbying activity. Further, we show that while uncertainty about the magnitude …

emissions). Governments may have some preference for supporting domestic production, such as by interest-group lobbying …