This study explores the linkages between trade policy, corruption, and environmental policy. We begin by presenting a theoretical model that produces several testable predictions: i) trade liberalization raises the stringency of environmental policy; ii) corruption reduces environmental policy...

This paper provides a step towards a more complete theory of lobbying, extending the menu-auction model of Grossman and Helpman [Grossman, G.M., Helpman, E., 1994. American Economic Review 84, 833-850] A new explanation is proposed for why more concentrated industries more easily overcome the...

Empirically collusive industries are known to be highly effective lobbyists. The reasons for this unclear and poorly understood. This paper provides a new explanation for the formation of protectionistic lobby groups. The level of collusion is shown to be a crucial determinant of the ability of...

We suggest a novel perspective on the relationship between the stringency of environmental policies and foreign direct investment (FDI). We develop a political economy model with imperfect product market competition where local and foreign firms jointly lobby the local government for a favorable...

We investigate the effect of corruption and industry sector size on energy policy outcomes. The main predictions of our theory are that: (i) greater corruptibility of policy makers reduces energy policy stringency; (ii) greater lobby group coordination costs (increased industry sector size)...

The purpose of this paper is twofold. First, we show that pollution abatement subsidies, defined as subsidies on the inputs to pollution abatement, are inefficient instruments for pollution control. Whereas these types of subsidies are used in practice, the existing literature analyses only...

This paper develops a theory of environmental policy formation, taking into consideration the degree of corruptibility and political turbulence. The predictions that emerge are that the interaction between the two variables is important. Political instability has a negative effect on the...

We develop and test a theory of the rule of law and environmental policy formation. In our model an increase in the degree of rule of law has two opposing partial effects on environmental policy: first, a greater share of policy decisions are implemented according to law; second, industry...