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This book provides a systematic analysis of the different types of voluntary approaches for environmental policy, their economic characteristics, their role and effectiveness.
In recent years, voluntary approaches to emission reductions have increasingly been adopted by major companies all over the world and have increasingly been supported by regulatory bodies and public administrations. Despite this world-wide effort to achieve a better environmental performance through voluntary approaches, economic analysis has somehow neglected the importance of voluntary approaches as an environmental policy instrument. This book is a first attempt to fill this gap by gathering together all major experts in the fields and by providing a detailed analysis of all main aspects characterising the design and implementation of voluntary approaches in environmental policy. The book, which is the outcome of cooperation between the École des Mines of Paris and the Fondazione ENI E. Mattei, within the EU Concerted Action on Market Based Policy Instruments for Environmental Protection, contains both theoretical analyses and case studies. The chapters of this book therefore provide a useful assessment of the main features and of the potential implementation problems of a new, important and promising environmental policy instrument.
Voluntary approaches (VAs) are increasingly implemented in different countries as the main instrument in environmental policies. The authors focus on the economics of VAs, their advantages and disadvantages and how they compare with other climate policy instruments. Voluntary Approaches in Climate Policy illustrates how corporate voluntarism can be harnessed to mitigate the climatic impact of business, and assesses the economics of VAs at the firm level and in the context of climate policies. It goes on to explore their efficiency and effectiveness, how they compare and combine with other instruments, how they impact competition and why they get adopted. Many questions are addressed and answered, such as:* What kinds of VAs have been implemented in different countries? * How did they perform under various economic and environmental criteria? * What are the key factors in increasing firms' participation in VAs? * How do VAs combine with other climate policy instruments such as carbon taxes and emissions trading? * How could they be designed for better performance?The book also contains an overview of VAs with a summary of each contribution, their main policy implications and suggestions for future research.Highlighting the implications of VAs in policy terms, this accessible book will appeal to a wide-ranging audience including economists, social scientists, policymakers and business managers, as well as environmental scientists and practitioners with a specific interest in climate change.
Since the early 1990s, voluntary programs have played an increasingly prominent role in environmental management in the U.S. and other industrialized countries. Programs have attempted to address problems ranging from climate change and energy efficiency, to more localized air and water pollution problems. But do they work? Despite a growing theoretical literature, there is limited empirical evidence on their success or the situations most conducive to the approaches. Even less is known about their cost-effectiveness. Getting credible answers is important. Research to date has been largely limited to individual programs. This innovative book seeks to clarify what is known by looking at a range of program types, including different approaches adopted in different nations. The focus is on assessing actual performance via seven case studies, including the U.S. Climate Wise program, the U.S. EPA's 33/50 program on toxic chemicals, the U.K. Climate Change Agreements, and the Keidanren Voluntary Action Plan in Japan. The central goals of Reality Check are understanding outcomes and, more specifically, the relationship between outcomes and design. By including in-depth analyses by experts from the U.S., Europe, and Japan, the book advances scholarship and provides practical information for the future design of voluntary programs to stakeholders and policymakers on all sides of the Atlantic and Pacific.
Voluntary approaches include environmental agreements negotiated with industry and public programs which firms can volunteer to participate in. They are increasingly supplementing or replacing other environmental policy instruments, such as regulations, taxes and tradable permits. However, their environmental effectiveness and economic efficiency are often challenged. Questions often asked include: Do voluntary approaches deliver the expected environmental benefits? Do they help reach environmental targets in a cost-effective way? This report assesses the use of voluntary approaches by building on a number of new case studies and an extensive search of the available literature. The focus of the analysis is on the environmental effectiveness, economic efficiency, and administrative costs of voluntary approaches, either used in isolation or as part of "policy mixes". This report concludes that the environmental effectiveness of voluntary approaches is often questionable, and their economic efficiency is generally low. While administrative and transaction costs vary greatly among voluntary approaches, it is clear that if too few resources are spent in their preparation, negotiation and enforcement, their environmental impacts are likely to be modest. Combining a voluntary approach with a tax or a tradable permit system can trigger quite significant additional administrative costs, and the environmental integrity of the other instrument can be weakened.
Voluntary approaches, such as corporate codes of conduct, have been widely advocated as alternatives to traditional approaches to environmental regulation. Yet concern remains that companies cannot be trusted to police themselves and that many of the putative advantages of self regulation, such as reduced cost and increased flexibility, have not been realised in practice. The book systematically analyses three initiatives (environmental management systems, the Australian Greenhouse Challenge and the Australian mining industry's Code for Environmental Management) and their contribution to public environmental policy. By moving the debate away from narrow considerations of economic efficiency towards a broader framework that accounts for the multiple goals to which environmental policy needs to be directed, this book significantly enhances our understanding of the role that voluntary approaches can play in achieving environmental policy goals. The book is required reading for all those concerned with the design and implementation of modern environmental policy.
Protecting the environment is often not the primary objective of businesses. As the world has become more environmentally aware, the necessity of environmental regulations becomes apparent. Voluntary Environmental Programs: A Policy Perspective examines different approaches to environmental protection in business. Typically, environmental improvements on the part of industry result from government regulations that command certain action from industry and then control how well it performs. An alternative approach is voluntary environmental agreements, where firms voluntarily commit to make certain environmental improvements individually, as part of an industry association, or under the guidance of a government entity. For example, many new initiatives targeting climate change originate from companies that voluntarily commit to reduce their carbon output or footprint.
Voluntary agreements and other approaches based on co-operation between public authorities and (agro) industrial polluters are rapidly gaining importance throughout Europe. This so-called Joint Environmental Policy-making (JEP) is increasingly being presented as a 'third way', alongside direct regulation through laws and the use of financial sticks and carrots in the form of eco-taxes and subsidies. Successes and failures are reported from JEP experiences in various European countries. This book seeks to evaluate these experiences. Is JEP really the panacea it is sometimes claimed to be? To what extent does JEP actually fit into different national policy systems and cultures? Is the application of JEP dependant on specific circumstances? In answering these and other questions, the book focuses on the forces and institutional conditions that are likely to promote the introduction, determine the form, and contribute to the successful functioning of JEP arrangements. Against the background of both deregulation and ecological modernization tendencies in European environmental policy, this book offers detailed analysis of JEP in three European countries (Austria, Denmark, and the Netherlands) and in three areas: industrial energy efficiency, food labelling, and package waste. The volume contributes to a better understanding of JEP in Europe and formulates policy recommendations for its successful implementation. But it also contributes to comparative environmental policy studies in providing an innovative approach.