When Do Voluntary Environmental Programs Succeed? Evidence from Green Electricity and All U.S. Utilities
نویسندگان
چکیده
Voluntary environmental programs (VEPs) can address environmental externalities when mandatory regulations are unattainable or undesirable. The extent to which VEPs succeed at improving environmental quality depends on participation levels from firms and consumers. We examine the factors that lead to a successful VEP by studying participation levels in residential green electricity programs. Among other findings, the key determinants of program success are the education of the consumer base and the affordability of the green electricity program. Our results will aid in ex ante evaluations of whether a VEP is likely to be a cost‐effective way of improving environmental quality. JEL Codes: H41, Q42, Q50
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