Lobbying Against Environmental Regulation vs. Lobbying for Loopholes

In: European journal of political economy, Band 21, Heft 4, S. 915-931

Abstract

We analyze the determinants of environmental policy when two industry lobbies can seek a laxer policy that would apply to both industries & loophole lobbying that provides benefits specific to one industry. We determine the properties of the lobbying equilibrium, including the resulting emissions level. In many cases, higher effectiveness of loophole lobbying is detrimental for industries & beneficial for environmental quality, as it exacerbates the free-rider problem in the provision of general lobbying by inducing industries to turn towards loophole lobbying. Figures, References. [Copyright 2005 Elsevier B.V.]