Thomas P. Lyon

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We develop an economic model of “greenwash,” in which a firm strategically discloses environmental information and a non-governmental organization (NGO) may audit and penalize the firm for engaging in greenwash. We identify conditions under which NGO punishment of greenwash backfires, inducing the firm to become less rather than more forthcoming about its(More)
An increasingly popular instrument for solving environmental problems is the “public voluntary agreement (VA),” in which government o¤ers technical assistance and positive publicity to ...rms that reach certain environmental goals. Prior papers treat such agreements as a superior, low-cost instrument that can be used to preempt a threat of traditional,(More)
In this model, insurance offering a choice of hospitals is valued because consumers are uncertain which hospital they will prefer ex post. A competitive insurance market facilitates tacit price collusion between hospitals; high margins induce hospitals to compete for customers through overinvestment in quality. Incentives may exist to lock in market share(More)
This article surveys the growing theoretical literature on the motives for and welfare effects<lb>of environmental corporate social responsibility (CSR). We show how both market and<lb>nonmarket forces are making environmental CSR profitable, and also discuss altruistic CSR.<lb>In particular, nongovernmental organizations strongly influence CSR activities,(More)
Large sunk costs and incomplete regulatory contracts in public utilities create the possibility of opportunistic behavior by either regulators or regulated firms. We present an empirical methodology for identifying opportunism within a regulated setting, and apply it to the largescale cost disallowances levied by state regulators on electric utilities(More)
This research assesses the environmental and economic benefits and costs of cleaner production projects formulated by smalland medium-sized enterprises (SMEs) participating in a sustainable supply program in Mexico. The program was designed as a public-private voluntary partnership to spur cleaner production dissemination in SMEs that are part of global(More)