Regulatory Commitment to Negotiated Agreements: Evidence from the United States, Germany, The Netherlands, and France

Abstract

Negotiated Agreements (NAs) are arrangements between firms and regulators in which firms voluntarily agree to reduce their pollution. This article analyzes the institutional features that facilitate or hamper the implementation of NAs. We illustrate the analysis with case studies on the implementation of NAs in the United States, Germany, the Netherlands, and France. We find that NAs are implemented when regulators are able to commit credibly to the objectives of NAs. Institutional environments marked by fragmentation of power and open access in policymaking reduce regulatory credibility and thus hamper the implementation of NAs.