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

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Paper Number: 2008-12

Document Date: 12/10/2008

Authors: Ian Lange

Subject Areas: Solid Waste; Electric Power; Environmental Policy

Keywords: voluntary environmental measures; coal fly ash; spillovers

Abstract: The framework for voluntary program evaluation assumes that voluntary programs provide partners with information that will not be transferred to non-partners. In this framework, a voluntary program 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 programs take many different forms; some which are expected to have information transfers (program spillovers) to non-partners. The Coal Combustion Products Partnership (C2P2) is a program to increase the re-use of coal combustion products (CCP) using a structure that is likely to provide spillovers to non-partners. This paper evaluates C2P2 and tests whether program spillovers are affecting non-partners’ behavior. Results suggest that the traditional interpretation would find this program unsuccessful, however when spillovers are considered, evidence points to a successful program.

Attachment: 2008-12.pdf (152K, About PDF)

Journal Publication:The B.E. Journal of Economic Analysis & Policy: Vol. 9 : Iss. 1 (Topics), Article 36.

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