Evaluating Voluntary Measures with Treatment Spillovers: The Case of Coal Combustion Products Partnership

Citation

Lange I (2009) Evaluating Voluntary Measures with Treatment Spillovers: The Case of Coal Combustion Products Partnership. BE Journal of Economic Analysis and Policy, 9 (1). https://doi.org/10.2202/1935-1682.2186

Abstract
Voluntary measures have traditionally been evaluated using a similar framework regardless of their structure. The framework assumes that the measure provides partners with a treatment (information, research support, etc) that will not be transferred to non-partners. In this framework, a voluntary measure is said to be worthwhile if there are significant differences between the behavior of partners and non-partners, correcting for the potential endogeneity of becoming a partner. However, voluntary measures take many different forms; some which are expected to have transfers (spillovers) to non-partners. The Coal Combustion Products Partnership (C2P2) is a U.S. voluntary program with a structure that is likely to provide treatment spillovers to non-partners. This paper evaluates C2P2 and tests whether treatment spillovers are affecting non-partners’ behavior. Results are consistent with a program that would traditionally been considered unsuccessful, however when treatment spillovers are considered, is consistent with a successful program.

Keywords
Voluntary environmental measures; spillovers; Environmental permits; Industrial productivity History

Journal
BE Journal of Economic Analysis and Policy: Volume 9, Issue 1