This report assesses the use of voluntary approaches by building on a number of new case studies and an extensive search of the available literature.

Voluntary approaches (VAs) are increasingly implemented in different countries as the main instrument in environmental policies. The authors focus on the economics of VAs, their advantages and disadvantages and how they compare with other climate policy instruments. Voluntary Approaches in Climate Policy illustrates how corporate voluntarism can be harnessed to mitigate the climatic impact of business, and assesses the economics of VAs at the firm level and in the context of climate policies. It goes on to explore their efficiency and effectiveness, how they compare and combine with other instruments, how they impact competition and why they get adopted. Many questions are addressed and answered, such as:* What kinds of VAs have been implemented in different countries? * How did they perform under various economic and environmental criteria? * What are the key factors in increasing firms' participation in VAs? * How do VAs combine with other climate policy instruments such as carbon taxes and emissions trading? * How could they be designed for better performance?The book also contains an overview of VAs with a summary of each contribution, their main policy implications and suggestions for future research.Highlighting the implications of VAs in policy terms, this accessible book will appeal to a wide-ranging audience including economists, social scientists, policymakers and business managers, as well as environmental scientists and practitioners with a specific interest in climate change.

Voluntary approaches include environmental agreements negotiated with industry and public programs which firms can volunteer to participate in. They are increasingly supplementing or replacing other environmental policy instruments, such as regulations, taxes and tradable permits. However, their environmental effectiveness and economic efficiency are often challenged. Questions often asked include: Do voluntary approaches deliver the expected environmental benefits? Do they help reach environmental targets in a cost-effective way? This report assesses the use of voluntary approaches by building on a number of new case studies and an extensive search of the available literature. The focus of the analysis is on the environmental effectiveness, economic efficiency, and administrative costs of voluntary approaches, either used in isolation or as part of "policy mixes". This report concludes that the environmental effectiveness of voluntary approaches is often questionable, and their economic efficiency is generally low. While administrative and transaction costs vary greatly among voluntary approaches, it is clear that if too few resources are spent in their preparation, negotiation and enforcement, their environmental impacts are likely to be modest. Combining a voluntary approach with a tax or a tradable permit system can trigger quite significant additional administrative costs, and the environmental integrity of the other instrument can be weakened.

Protecting the environment is often not the primary objective of businesses. As the world has become more environmentally aware, the necessity of environmental regulations becomes apparent. Voluntary Environmental Programs: A Policy Perspective examines different approaches to environmental protection in business. Typically, environmental improvements on the part of industry result from government regulations that command certain action from industry and then control how well it performs. An alternative approach is voluntary environmental agreements, where firms voluntarily commit to make certain environmental improvements individually, as part of an industry association, or under the guidance of a government entity. For example, many new initiatives targeting climate change originate from companies that voluntarily commit to reduce their carbon output or footprint.

Voluntary environmental agreements (VEAs) – generally agreements between government and business – have been regarded by many as a key new instrument for meeting environmental objectives in a flexible manner. Their performance to date has, however, also led to considerable criticism, with several parties arguing that they are methods for avoiding real action that goes beyond "business-as-usual". Is either of these positions justified? The aim of this book is to highlight and learn the lessons from existing experience, looking not just at results but also at specific elements of agreements and also at the process of the agreement itself. Lessons are drawn from experience from across the world, covering the full range of environmental challenges, and from the perspective of key stakeholder groups. Importantly, the book also presents tools for assessing and improving existing agreements and includes recommendations and guidelines for future agreements in key areas such as climate change. It also deals at length with the problem of how such agreements might be used in developing and transitional economies. The overall view of the book is that there is a real potential for the future use of VEAs as part of the policy mix and as a tool for sharing the responsibility for meeting environmental objectives. For the agreements to play this role, however, significant steps are needed to ensure that they are effective, efficient, equitable and appropriately linked to a portfolio of other instruments. The book is divided into four sections. First, existing agreements, their development and efficacy are considered; second, the prospects for voluntary agreements in developing and transitional economies are discussed; third, a range of authors examine the role of VEAs as part of the policy mix to combat climate change; and, finally, the book concludes with an examination of how new tools for evaluating and improving VEAs could be utilized in the future. Voluntary Environmental Agreements will be of interest not only to academics, governments and businesses wishing to understand this specific instrument, but also to those already implementing or considering applying VEAs to meet their environmental objectives.

Here is a practical reference which provides common methodologies, implementation rules and evalutation criteria for researchers, policy makers and business operators in the use of environmental voluntary agreements between regulators and polluters The book takes into account the variety of forms and application situations characterizing this environmental policy instrument, illustrating methodologies, implementation rules and evaluation criteria for researchers, policy makers and business operators.