Voluntary agreements in industry: A comparative description of the process and a normative analysis

In this paper the authors analyze voluntary agreements used as policy instruments to increase energy efficiency in industrial production processes. The analysis is based on case studies of voluntary agreements in Great Britain, Denmark, Finland, The Netherlands and Sweden. The viewpoint in the approach will be the policy process starting with the political choice of the use of voluntary agreements as a political instrument ending with the effects at company level. The agreements are negotiated between representatives from the industry and the authorities. The targets are the main issues during the negotiations. Methods for monitoring and sanctions have only been minor issues in the negotiations. The choice of voluntary agreements follows a tradition in industrial policy of using voluntary approaches or softer measures in general. The design of the voluntary agreements differs substantially in scope and design. Concerning the normative assessment, the authors use seven criteria based on suggestions put forward by the European Commission and the International Energy Agency among others. Looking at the agreement through these glasses, they do not look very good. The Dutch and the Danish agreements come out as the winners. But other glasses could be used. Voluntary agreements could also be considered as anmore » early instrument in a new policy area in situations where a more coercive regulation with taxes or prohibitions is impossible.« less