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Behavioral and Distributional Effects of Environmental Policy$
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Carlo Carraro and Gilbert E. Metcalf

Print publication date: 2000

Print ISBN-13: 9780226094816

Published to Chicago Scholarship Online: February 2013

DOI: 10.7208/chicago/9780226094809.001.0001

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Environmental Information and Company Behavior

Environmental Information and Company Behavior

(p.251) 8 Environmental Information and Company Behavior
Behavioral and Distributional Effects of Environmental Policy

Domenico Siniscalco

Stefania Borghini

Marcella Fantini

Federica Ranghieri

University of Chicago Press

Environmental policy is traditionally based on two sets of tools: command and control regulations; and economic or market instruments, such as environmental taxes, emissions charges, and tradable permits. In the last few years, some policymakers, the business community, and the media have increasingly emphasized the role of information-based environmental instruments. Such instruments, which are typically voluntary, range from company environmental reports to environmental audit and management schemes. This chapter explores firm behavior with respect to information-based environmental policies, dwelling on two building blocks: an original database at the company level collected by Fondazione Eni Enrico Mattei since 1995, and some recent literature on information and incentive schemes in companies. It first considers the main information-based environmental management tools and considers the theoretical rationale for their adoption. It then describes the database and identifies a subset of homogeneous companies in three polluting industries: oil and gas, petrochemicals, and power generation. Finally, the chapter presents some empirical results on the relation between information-based environmental strategies, economic performance, and environmental performance at the company level.

Keywords:   environmental policy, company behavior, polluting industries, Fondazione Eni Enrico Mattei, environmental management, oil, petrochemicals, power generation, economic performance, environmental performance

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