Assessing voluntary programs to improve environmental quality

The last decade has seen a dramatic increase in the use of voluntary approaches (VAs) to environmental protection, which has spurned a growing literature on the relative merits of voluntary vs. mandatory approaches. This paper draws on that literature to discuss both the theoretical and empirical issues that arise in the evaluation or assessment of a particular VA. We consider both the environmental effectiveness and the efficiency of this policy approach. Our aim is to aid policymakers in evaluating a specific program or in thinking about the use and design of a VA. We identify some key features that are likely to increase both the effectiveness and the efficiency of VAs.