Voluntary programmes 'weak, but prepare market' – RFF

New York, 8 February: Voluntary environmental programmes have limited impact, but can help participants and regulators prepare for mandatory schemes, concludes a new book from US think-tank Resources for the Future (RFF).

Reality Check: Voluntary Environmental Programs was written by various authors and edited by RFF senior fellows Richard Morgenstern and William Pizer. It examines seven efforts in the US, Europe and Japan, including the US Environmental Protection Agency's Climate Wise programme and the UK's 2001 Climate Change Agreements.

The editors see "explosive growth" in voluntary programmes since the early 1990s, counting 87 at the EPA, dozens at the US Department of Energy, 300 in Europe and 30,000 in Japan (though this includes single firms working with local agencies). They attribute the surge to "growing optimism" about cooperation between government and business, but also to "widespread frustration with the long and expensive battles often associated with new environmental regulations".

During a 7 February conference call, Pizer said the programmes produced reductions in environmental impacts in the 0-10% range, averaging 5%, with the UK programme reaping 9% because it offered tax benefits. "That's not a huge effect," he said. "If you want major changes in behaviour, you need more than voluntary programmes."

Some environmental groups dislike voluntary efforts, Morgenstern notes, fearing they "shift the focus from the worst polluters to the more progressive ones that tend to participate in these programmes".

But he sees benefits, since such programmes give companies "hands-on" experience, provide them with technical assistance from governments, enhance their reputations, and allow them to influence future regulation. Governments can also build support for future mandates, Morgenstern added.

Working in voluntary programmes also forces firms to track their emissions and examine their operations, Pizer said. "People get used to what a regulatory approach is likely to require and are less frightened," he commented.