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The Political Economy of Environmental Regulation


Our research focuses on the political economy of environmental policy instruments. We use contest theory to analyze the strategic interaction of agents competing for rents that produce externalities. We have shown that contemporary forms of command-and-control regulation may be more efficient than typically portrayed in the literature. In some cases, the efficiency of environmental standards stipulated via benchmarking may be increased through lobbying. In recent work, we examine environmental policy in an open economy when the regulator is influenced by interest groups. We aim to provide a new motivation for why environmental policy diffusion – i.e., a country adopting the stricter regulation of its trading partners – may occur.

Publications and working papers

Gerigk, J., I.A. MacKenzie, and M. Ohndorf: A model of benchmarking regulation: revisiting the efficiency of environmental standards. Environmental and Resource Economics, forthcoming

Participating researchers

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Thu Jun 29 01:02:57 CEST 2017
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