Corporate Environmentalism and Public Policy by Thomas P. Lyon

By Thomas P. Lyon

Drawing on previous paintings on company environmentalism, Thomas Lyon and John Maxwell argue that company environmentalism is the results of corporations trying to expect public coverage adjustments and impact the legislative strategy of their top pursuits. proposing a common framework that highlights the hyperlinks among company environmentalism and public coverage, they use analytical instruments of optimistic political financial system and online game concept to supply insights into company approach and the results of company and executive regulations on total social welfare.

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These papers are positive in nature. Regardless of whether the focus is on elections or the behavior of sitting legislatures, there is wide agreement that special interest groups wield important influence in the political process. A large literature has developed in recent years that opens up the “black box” of interest group politics to examine interest group strategies in detail. Grossman and Helpman (2001) provide a rigorous approach to these issues, with two main emphases: (1) the role of lobbying in providing information, and (2) the role of campaign contributions in influencing legislative behavior.

In its strategic plan for 2000–2005, the EPA identifies the following goals: “clean air, clean and safe water, safe food; preventing pollution and reducing risks in communities, homes, workplaces, and ecosystems; better waste management, restoration of contaminated waste sites, and emergency response; reduction of global and cross-border environmental risks; expansion of Americans’ right to know about their environment; sound science, improved understanding of environmental risk, and greater innovation to address environmental problems; a credible deterrent to pollution and greater compliance with 8 For an overview of principal–agent models, see Salani´e (2002).

Examples of such environmentally friendly products include organic produce, tuna caught with dolphin-safe nets, biodegradable plastic bags, reformulated gasoline, and McDonald’s Corporation’s substitution of paper wrapping for styrofoam “clamshell” sandwich containers. The basic notion here is that firms can differentiate their products by improving their environmental qualities, and thereby charge a higher price to high-income consumers. There is a small but growing economic literature that studies theoretical models of the “green” consumer phenomenon.

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