Abstract
Firms play a key role in pollution abatement and control by engaging in beyond-compliance actions without the force of law in voluntary programs. This study examines the effectiveness of a bilateral voluntary agreement, one type of voluntary programs, negotiated between the U.S. Environmental Protection Agency (EPA) and the pressure-treated wood industry to phase-out the use of chromated copper arsenate (CCA), a poisonous arsenic compound. Arsenic is ranked number one on the EPA's priority list of hazardous substances. Unlike a majority of earlier studies on voluntary programs, dynamic panel estimation and structural break analysis show that while a technological innovation in semiconductors is associated with arsenic use increases, the CCA voluntary agreement is associated with a reduction in arsenic use to levels not seen since the 1920s. A voluntary ban in arsenic acid by pesticide manufacturers in the agriculture sector has also contributed to arsenic reductions. Furthermore, the results suggest that environmental activism has played a role in curbing arsenic use. Increasing stakeholder pressures, as measured by membership in the Sierra Club, improves voluntary agreement effectiveness.
Original language | English (US) |
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Pages (from-to) | 435-446 |
Number of pages | 12 |
Journal | Journal of Environmental Management |
Volume | 131 |
DOIs | |
State | Published - Dec 15 2013 |
Externally published | Yes |
Keywords
- Environmental policy
- Industry self-regulation
- Voluntary compliance
- Voluntary programs
ASJC Scopus subject areas
- Environmental Engineering
- Waste Management and Disposal
- Management, Monitoring, Policy and Law