Government Clubs: Theory and Evidence from Voluntary Environmental Programs

Exploring new ways of assessing the effect of regulation on environmental management

“…This finding is supported by other research (Carmin et al, 2003;Davies and Mazurek, 1996;Coglianese and Nash, 2008), suggesting that participation may be higher among regulated organizations. In this study, participation was highest in Energy Star and LEED (both are open to all industries).…”

“…Individual practices may be favored by facilities wishing to avoid VEP certification and participation costs, or required prescribed practices (Lyon and Maxwell, 2004;Khanna et al, 2007;Reinhardt, 2000;Porter and van der Linde, 1995). Conversely, VEPs may be preferred by facilities seeking to communicate positive intentions, foster collaborative relationships with stakeholders, and more highly regulated organizations 1 (Alberini and Segerson, 2002;Khanna and Brouhle, 2009;Carmin et al, 2003;Davies and Mazurek, 1996;Videras and Alberini, 2000;Coglianese and Nash, 2008). VEPs originated as alternatives to prescriptive regulations, and regulatory agencies continue to expand VEP offerings, targeted primarily toward regulated facilities under their jurisdiction (Carmin et al, 2003;U.S.…”

“…For example, only about 10% as many facilities joined the EPA's recently closed National Environmental Performance Track as those that certified to ISO 14001 standards, considered to have comparable requirements. In addition, even as the EPA is offering more VEPs, the agency has terminated some programs due to low participation and other factors (Davies and Mazurek, 1996;Coglianese and Nash, 2008). Meanwhile, participation in VEPs operated by nongovernmental sponsors that address industries not typically subject to extensive environmental regulation is increasing (Jones, 2007;U.S.…”

“…Construction respondents noted that LEED participation depends on client demand, but client sectors were not obtained. requirements and higher risks (e.g., potential litigation) inherent with government-sponsored programs, which outweigh the benefits of participation (Davies and Mazurek, 1996;Coglianese and Nash, 2008). Benefits appear to center on public recognition (Videras and Alberini, 2000;Arora and Gangopadhyay, 1995;Khanna and Damon, 1999;Seema and Cason, 1996;Seema and Cason, 1995), but also may include technical assistance, financial incentives (e.g., tax credits), or networking and information exchange.…”

“…Program characteristics are also important, and may be influenced by sponsorship. Participation has not been uniform among government-sponsored and nongovernmental VEPs (Coglianese and Nash, 2008). For example, only about 10% as many facilities joined the EPA's recently closed National Environmental Performance Track as those that certified to ISO 14001 standards, considered to have comparable requirements.…”