BC3. Basque centre for climate change – Klima aldaketa ikergai

Seminar / Mintegia / Seminario
Voluntary and Information Based Approaches to Environmental Management: An Impure Public Good and Club Theory Perspective.

Prof. Matthew Kotchen. Associate Professor of Economics (Yale University) School of Forestry & Environmental Studies

ABSTRACT: This presentation will evaluate voluntary- and information-based approaches (VIBAs) to environmental management through the lens of public economic theory, which some empirical evidence. The unifying theme is that VIBAs are based on market arrangements with joint production of private benefits along with environmental public goods. The joint production applies not only to firms that join a voluntary environmental program, which may provide reputation benefits along with improved environmental performance, but also to consumers that purchase environmentally friendly goods and services, which offer private benefits along with reduced environmental impacts. The innovation of these arrangements is that joint production of the private benefits effectively “subsidizes” voluntary provision of the public good. When viewed in this way, VIBAs have a property rights interpretation because they privatize some aspect of public good provision in order to make it more incentive compatible. While this strategy can create meaningful incentives for greater environmental protection and efficiencies, this need not be the case, and a more complete understanding of the theoretical basis of VIBAs and careful empirical studies will help determine the circumstances under which they may offer an effective form of environmental management.

If you are interested in attending the Seminar, please register yourself clicking here

12.00-13.00 Paraninfo UPV/EHU Bizkaia Aretoa (room: ArriagaElhuyar) Avda. Abandoibarra 3, 48009 Bilbao

* The Seminar will be in English. / Mintegia ingelesez burutuko da. / El seminario se realizará en inglés.