Thomas P. Lyon,
Dow Professor of Sustainable Science, Technology & Commerce
ABSTRACT:
This paper assesses the existing and potential contribution of economics to understanding the processes that govern the environmental behavior of corporations. I begin with a brief overview of the economic approach to social science research. I then summarize some relevant recent contributions from environmental economics (focusing on instrument choice and monitoring and enforcement), political economy, and institutional economics. I bring these strands of research together in discussing the growing literature on voluntary approaches to environmental protection. I conclude by offering suggestions for a future research agenda in this area