The influence of lobby groups on public opinion : the case of environmental policy
Files
(Published version)
Date
2005
Authors
Wilson, J.K.
Editors
Advisors
Journal Title
Journal ISSN
Volume Title
Type:
Conference paper
Citation
2005
Statement of Responsibility
Conference Name
European Association of Environmental and Resource Economists 14th Annual Conference (23 Jun 2005 - 26 Jun 2005 : Bremen, Germany)
Abstract
What role does the provision of information by special interest groups play in changing public perceptions about environmental issues, and on the formation of public policy? To date, much of the environmental policy literature has focussed on lobbying efforts by special interest groups in which direct policy contingent contributions are made to the government. However, spending by special interest groups, in particular those representing environmental concerns, is often not directed towards the government, but instead towards policies aimed at influencing the public’s beliefs regarding the extent and severity of environmental damage. This paper presents a model of strategic lobbying of the government and the public by special interest groups with opposing environmental concerns. Building on Yu (2005), we consider the case where a polluting firm and an environmental lobby send costly messages to a relatively uniformed public about environmental damage (indirect lobbying). At the same time, the firm can engage in direct lobbying of the government by making policy contingent contributions (direct lobbying). As such, the common agency framework of Grossman and Helpman (1994) is combined with the literature relating to signalling. The results reveal that separating equilibria exist where the public will learn the true level of environmental damage. The strategic importance of indirect lobbying as a means by which environmental concerns can curtail the political influence of polluters is also established. Finally, direct and indirect lobbying by the polluting firm are found to be strategic complements, but this is shown to occur only under limited circumstances.
School/Discipline
Dissertation Note
Provenance
Description
Access Status
Rights
Copyright [2005] John Wilson