Voluntary Agreement Of Cooperation Between Firms

Voluntary Agreement Of Cooperation Between Firms

In the event of a reduction subsidy, the government effectively grants pollution rights to companies and obliges taxpayers to compensate companies for any reduction in pollution. This is in line with the sacrificing principle that the beneficiaries of pollution must pay to reduce pollution. In contrast, an emissions tax effectively gives potential polluters (taxpayers) the right to a clean environment and obliges companies to pay taxpayers (by paying taxes on emissions) the privilege of violating this right. This is in line with the polluter pays principle, according to which the producers of pollution must pay for the pollution privilege48. Empirical studies on voluntary over-compliance are relatively recent and are gradually multiplying and advancing theoretical discussions. Some articles, such as Arora and Cason (1995), examine companies` choices to participate in voluntary government-sponsored overconformity programs, such as the U.S.-sponsored 33/50 program. . . .


Comments are closed.