Download Corporate Environmentalism and Public Policy by Thomas P. Lyon PDF

By Thomas P. Lyon

Drawing on earlier paintings on company environmentalism, Thomas Lyon and John Maxwell argue that company environmentalism is the results of companies trying to expect public coverage alterations and effect the legislative method of their top pursuits. featuring a normal framework that highlights the hyperlinks among company environmentalism and public coverage, they use analytical instruments of confident political economic system and video game concept to supply insights into company technique and the results of company and govt regulations on total social welfare.

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While a market would leave the full benefits of the innovation in the hands of the firm, the regulator divides the benefits between the firm and its customers so as to maximize political support. Becker (1983) extends Peltzman’s analysis to examine the efficiency with which income transfers are effected. Becker argues that groups pressing for transfers that generate little deadweight loss have an inherent advantage in generating political pressure. 7 The beauty of the analysis is that it provides an integrative framework in which the economic theory of regulation and the normative ideal of social welfare maximization can be considered jointly.

Peltzman postulates a political decisionmaker interested in maximizing political support, who can redistribute wealth across groups of citizens. 5 6 For more detailed treatments of the recent literature, see Grossman and Helpman (2001) or Persson and Tabellini (2000). We will use this type of model in chapters 7 and 8, where we study political responses to proposals made by regulatory authorities. 34 The interaction of strategy and policy Various interest groups offer support through means such as campaign contributions, promises of future votes, assistance in getting out the vote, etc.

As discussed in chapter 1, the stages of the policy life cycle are: development, politicization, legislation, and implementation. We discuss these in more detail below, highlighting the role of interest groups at each stage, and identifying the type of formal models that are appropriate for characterizing the policy process. 1 Development and politicization Chronic environmental problems may go ignored for long periods of time before interest groups form around the issue and begin to take action.

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