Green Clubs and Voluntary Governance: ISO 14001 and Firms' Regulatory Compliance

Voluntary programs have become widespread tools for governments and nongovernmental actors looking to improve industry's environmental and regulatory performance. Voluntary programs can be conceptualized as club goods that provide nonrival but potentially excludable benefits to members. For firms, the value of joining a green club over taking the same actions unilaterally is to appropriate the club's positive brand reputation. Our analysis of about 3,700 U.S. facilities indicates that joining ISO 14001, an important nongovernmental voluntary program, improves facilities' compliance with government regulations. We conjecture that ISO 14001 is effective because its broad positive standing with external audiences provides a reputational benefit that helps induce facilities to take costly progressive environmental action they would not take unilaterally .     

Incentivizing self‐regulation: Federal vs. state‐level voluntary programs in US climate change policies

How does program sponsorship influence the design of voluntary programs? Why and how do voluntary programs on climate change sponsored by the state and federal governments in the United States vary in their institutional design? Scholars emphasize the signaling role of voluntary programs to outside stakeholders, and the excludable benefits that induce firms to take on non‐trivial costs of joining voluntary programs. Scholars have noted several types of benefits, particularly reputational benefits programs provide, but have not systematically studied why different programs emphasize different types of benefits. We suggest that excludable benefits are likely to take different forms depending on the institutional context in which program sponsors function. We hypothesize that federal programs are likely to emphasize less tangible reputational benefits while state programs are likely to emphasize more tangible benefits, such as access to technical knowledge and capital. Statistical analyses show the odds of a voluntary program emphasizing tangible benefits increases by several folds when the program is sponsored by the state as opposed to federal government.     

Spillover Effects of Voluntary Environmental Programs on Greenhouse Gas Emissions: Lessons from Mexico

We compare the environmental performance of voluntary environmental programs (VEPs) with different attributes. Using club theory, we argue that the differential performance of VEPs is due in part to their specific design attributes that will either enhance or diminish their ability to improve both targeted and untargeted environmental impacts. We analyze two VEPs in Mexico, the global standard ISO 14001 and the local standard Clean Industry. These two VEPs differ in the stringency of the standards and in their ability to sanction noncompliant facilities. These differences ensure that firms adopting the local standard are less likely to shirk their responsibilities and enhance potential spillover effects on untargeted environmental emissions. Our empirical results support our hypotheses and show that the local Clean Industry program is more effective in improving both targeted (toxic emissions) and untargeted environmental impacts (greenhouse gas emissions).     

From norms to programs: The United Nations Global Compact and global governance

Norms shape policy when they get translated into concrete programs. What if a widely shared norm gets translated into a weak program? How might this influence the program's legitimacy? We examine these issues in the context of the United Nations Global Compact, a voluntary program that embodies the widely shared norm of corporate responsibility. While both international intergovernmental organization (IGO) and international non‐governmental organization (INGO) networks support this norm, they differ on the adequacy of the Compact's program design. We explore how this tension affects the diffusion of the Compact across countries, which vary in their levels of embeddedness in IGO and INGO networks. Our findings suggest that embeddedness in IGO networks encourages adoption, while embeddedness in INGO networks discourages it. Our analysis provides important lessons for sponsors of voluntary governance mechanisms. Widespread support for a norm does not automatically ensure support for a program that claims to embody it.     

Regulating lobbying activities in the European Union: A voluntary club perspective

This article offers a systematic exploration of why interest groups sign up to the European Union Transparency Register, a non‐binding lobby regulation system. We distinguish between instrumental and normative perspectives to explain voluntary compliance, and find that concern for one's reputation represents the most important motivational driver. Based on this, we suggest that the Transparency Register can be understood as a “voluntary club” sponsored by European institutions. This theoretical perspective captures the appeal of the instrument among lobbyists, but also a number of inconsistencies in its current design, which make it unviable in the long term. We outline implications for the ongoing reform of the Transparency Register, and more generally for the regulation of lobbying activities. The analysis draws on semi‐structured interviews with various types of lobbyists active in Brussels, and on data from public consultations organized by the European Commission.     

The contextualist turn and schematics of institutional fit: Theory and a case study from Southern India

The policy literature has long recognized the inherent need for a program to fit the unique conditions found in a certain context. We present a theory of institutional contextualism that focuses on the mechanisms by which actors adapt a policy design to fit a situation. We conceptualize institutions as phenomena that are constituted by a constant dialectic between text (the general blueprint) and context (the particular setting). The first half of this dialectic, which is the diffusion of the constitutive text or norm onto the institutional setting, has been discussed in the literature. Our research focuses on the second half, and we delineate, in concept, mechanisms for fitting the program to the local context. We then use a case study of improvised microfinance programs in Tamil Nadu, India, to illustrate how this occurs in reality. The research underscores the unexamined link between effective governance and contextual fit and offers a typology of mechanisms for fit that should inform future research.     

A different lens: administrative perspectives on portability in Illinois' Housing Choice Voucher Program

Over the last decade, the Housing Choice Voucher Program has grown to become the USA's primary strategy for providing safe, decent, and affordable housing. Annually serving more than 2 million low-income households, the program is designed to help low-income households afford private market rental housing. The program also allows for the “portability” of vouchers nationally between housing authority jurisdictions. Both features aim to mitigate the effects of concentrated poverty. Research on the Moving to Opportunity Program and the Gautreaux consent decree have produced data confirming that residential mobility can at times lead to positive opportunities for assisted households. This past research has been conducted on specific programs occurring outside of the general Housing Choice Voucher Program framework and has focused on household-level outcomes, paying little attention to the ways in which program administration may affect outcomes for voucher households. This article aims to understand voucher portability from the perspective of housing authority executive directors and program administrators, in order to better understand how program administration impacts the types of household outcomes observed in prior research. The results reveal that housing authority administrative practices and inter-housing authority relationships play a significant role in shaping the types of outcomes realized by porting voucher households. These findings suggest several changes to program administrative design and policy that may improve support for voucher households as they make portability moves.     

PROGRAM EVALUATION AND ADMINISTRATIVE CONTROL

What is the role of program evaluation research in making and implementing social policy and how do program evaluators view the social programs they evaluate? This article discusses the findings of two closely related studies that examine these questions from the perspective of organization theory. These studies found that program evaluations rely on methods of research that do not correspond to the extent of uncertainty in social programs over goals and causal knowledge, and that most evaluations define organizational effectiveness solely in terms of goal achievement. In addition, of the various groups with a stake in the evaluation process, only federal and top program administrators influenced the implementation and interpretation of the studies. These findings, when taken together, suggest that program evaluation research acts more to augment administrative control than to increase our understanding of the effects of social policy.     

The Relative Influence of Appropriation Subcommittees: Institutional Structure and Program Performance

Unlike previous analyses that evaluate the influence of the authorization committees on government agency management, we examine the US congressional appropriation subcommittees to see how their structural characteristics affect the performance of the programs that they fund. Specifically, we look at whether the competition for resources and member workload within subcommittees affects the effectiveness and efficiency of the programs under their purview. As part of the Congressional budget process, appropriation subcommittees are annually allocated new budgets from which they must fund a set of government programs. We find that the level of resources in a subcommittee affects program performance. Greater subcommittee resources are negatively correlated with program performance. We also find that workload matters—programs in subcommittees with fewer issue areas and programs per member are more effective and efficient. A subcommittee's capacity to focus on management problems and issue areas leads to better program performance.     

Comparative Decentralization Lessons from Pakistan, Indonesia, and the Philippines

This article provides an analytic framework to guide regimes that are designing or implementing decentralization programs. It is based on a comparison of three Asian cases of fast-track decentralization. The framework suggests that regimes contemplating devolution must face fundamental issues of (1) background support, (2) culture and institutions, and (3) technical design and sequencing. It can be used by regimes to compare the relative difficulty of fundamental challenges to decentralization with their own capacity and potential for effective response. The three regimes responded similarly to the first two issues and differed in how they performed technical activities to implement the decentralization programs. Within this technical sequence, the regimes varied widely in performance. In that the Philippine program has attained better performance so far, the different responses of that regime are significant. More research is required to explain differences in technical performance in the Philippines and other similar programs and to attribute measures of decentralization success to these differences.     

Chief executive officers and voluntary environmental performance: Costa Rica's certification for sustainable tourism

This study evaluates whether the education, environmental expertise, and nationality of firms' chief executive officers (CEOs) are associated with greater participation and environmental performance in a voluntary environmental program implemented in a developing nation. Specifically, we collected data from the Certification for Sustainable Tourism (CST) program, a voluntary initiative aimed at promoting beyond-compliance environmental performance by hotels operating in Costa Rica. Our findings suggest that CEOs' level of formal education and environmental expertise appear to be significantly associated with higher corporate participation in voluntary programs and also with higher beyond-compliance environmental performance ratings. Contrary to conventional expectations, CEOs from industrialized countries (as opposed to developing countries) do not appear to show a statistically significant association with participation in the CST program and with higher beyond-compliance environmental performance.     

Local labor markets and local area effects on welfare duration

The Survey of Income and Program Participation (SIPP) has become an important tool for studying how long people stay on welfare programs because it has monthly data on a variety of welfare programs. This article presents estimates of duration models for unmarried women with children who are on the Aid to Families with Dependent Children program (AFDC) using the 1984 and 1985 panels of SIPP. A weakness in previous welfare duration studies is that they do not include local labor market conditions or other local area effects; this omission may bias the estimated effects of policy variables (such as benefit levels) and labor market variables. This article incorporates relevant local area information from the City County Data Book and links this to SIPP welfare recipients based on county of residence. I find that local variables such as unemployment rates or per capita sales affect welfare exit rates, especially for blacks. Living in an urban area lengthens welfare spells for both whites and blacks.     

Extending the Theory of Goal Ambiguity to Programs: Examining the Relationship between Goal Ambiguity and Performance

One of the main assumptions of empirical studies conducted on the influence of goal ambiguity in public management is that goal ambiguity relates negatively to performance. However, this relationship has rarely been tested at the program level because common goal ambiguity and performance measures for disparate government programs have been scant. The availability of Program Assessment Rating Tool (PART) results for a number of federal programs provides the opportunity for an analysis testing the foregoing assumption. Measures of program goal ambiguity—target, timeline, and program evaluation—are shown to have negative relationships with different program performance scores, taking into account alternative influences or biases on performance. This analysis extends the theory of goal ambiguity by providing the first analysis of large‐sample federal programs. The theoretical and practical implications are presented in the discussion and conclusion.     

Trust but verify? Voluntary regulation programs in the nonprofit sector

In this article we examine how information problems can cause agency slippages and lead to governance failures in nonprofit organizations. Drawing on the principal–agent literature, we provide a theoretical account of an institutional mechanism, namely, voluntary regulation programs, to mitigate such slippages. These programs seek to impose obligations on their participants regarding internal governance and use of resources. By joining these programs, nonprofit organizations seek to differentiate themselves from nonparticipants and signal to their principals that they are deploying resources as per the organizational mandate. If principals are assured that agency slippages are lower in program participants, they might be more likely to provide the participants with resources to deliver goods and services to their target populations. However, regulatory programs for nonprofit organizations are of variable quality and, in some cases, could be designed to obscure rather than reveal information. We outline an analytical framework to differentiate the credible clubs from the “charity washes.” A focus on the institutional architecture of these programs can help to predict their efficacy in reducing agency problems.     

The Effects of Accountability Incentives in Early Childhood Education

In an effort to enhance the quality of early childhood education (ECE) at scale, nearly all U.S. states have recently adopted Quality Rating and Improvement Systems (QRIS). These accountability systems give providers and parents information about program quality and create both reputational and financial incentives for program improvement. However, we know little about whether these accountability reforms operate as theorized. This study provides the first empirical evidence on this question using data from North Carolina, a state with a mature QRIS. Using a regression discontinuity design, we examine how assignment to a lower quality rating influenced subsequent outcomes of ECE programs. We find that programs responded to a lower quality rating with comparative performance gains, including improvement on a multi‐faceted measure of classroom quality. Programs assigned to a lower star rating also experienced enrollment declines, which is consistent with the hypothesis that parents responded to information about program quality by selectively enrolling away from programs with lower ratings. These effects were concentrated among programs that faced higher levels of competition from nearby providers.     

Assessing a voluntary environmental initiative in the developing world: The Costa Rican Certification for Sustainable Tourism

The public policy literature has paid little attention to evaluating the ability of voluntary environmental programs to generate economic benefits for firms. Yet, given their voluntary nature, provision of economic benefits to firms is a necessary condition for these programs to become effective environmental policy instruments. Additionally, little is known about why firms operating in developing countries would participate in these initiatives.This paper provides some of the first cross-sectional empirical evidence about voluntary environmental programs established in developing countries. Specifically, the paper focuses on studying hotel participation in the Costa Rican Certification for Sustainable Tourism (CST program). The CST program is probably the first performance-based voluntary environmental program created by a developing country government. Results indicate that hotels with certified superior environmental performance show a positive relationship with differentiation advantages that yield price premiums. Participation in the CST program alone is not significantly related to higher prices and higher sales. The evidence also indicates that participation in the CST program was significantly related to government monitoring, trade association membership and hotels focus on green consumers.     

Housing Programs Fail to Deliver on Neighborhood Quality,Reexamined

This article revisits the relative performance of housing programs in terms of delivering on neighborhood quality. Newman and Schnare examined this issue in 1997, and this article updates their work more than a decade later. Both efforts examine the neighborhood characteristics surrounding assisted rental housing and assess the direction of assisted-housing policy. The analysis is performed by exploring census data at the tract level for the tenant-based Housing Choice Voucher program plus a set of project-based programs, including public housing, the Low-Income Housing Tax Credit program, and other HUD multifamily programs. We conclude that Newman and Schnare remain correct that rental housing assistance does little to improve the quality of the recipients' neighborhoods relative to those of welfare households and can make things worse. However, things have improved. The Housing Choice Voucher and Low-Income Housing Tax Credit programs have grown in importance over the intervening years and have improved their performance by moving more households into low-poverty, less distressed areas. Importantly, these active programs for assisted housing are beginning to find ways to overcome the barriers preventing entry into the suburbs, although more needs to be done.     

Polity Size and Local Political Trust: A Quasi‐experiment Using Municipal Mergers in Denmark

This article examines the relationship between polity size and political trust in local government for which two schools of thought offer opposing expectations. The theoretical disagreement has received considerable attention and this article contributes with a dynamic perspective of how changes in polity size affect changes in citizens' political trust on the input‐side of local government. The case examined is the recent municipal mergers in Denmark which were implemented on 1 January 2007. The article reports an analysis of a panel based on a repeated survey of Danish citizens using an untreated control group design with pre‐test and post‐test. A quasi‐experimental difference‐in‐difference identification strategy is used to obtain the effect of municipal size on local political trust. The results show that changes in municipal size negatively affect local political trust, which is consistent with the expectation from the political economy theory that political trust tends to decrease with the size of the polity.     

Voluntary environmental programs: A comparative perspective

Voluntary environmental programs (VEPs) are institutions for inducing firms to produce environmental goods beyond legal requirements. A comparative perspective on VEPs shows how incentives to sponsor and participate in VEPs vary across countries in ways that reveal their potential and limitations. Our brief survey examines conditions under which VEPs emerge, attract participants, and improve participants' environmental performance. We focus on the costs and bene‐fits for actors seeking to supply (or sponsor) these governance mechanisms as well as the costs and benefits for firms who are considering joining VEPs and adhering to their program obligations. © 2011 by the Association for Public Policy Analysis and Management.     

The management quest for authentic relationships in voluntary social care

Little research has been devoted to exploring the perspective of volunteer managers and the values guiding them in their effort to manage voluntary social care. The purpose of this article is to begin to provide insight into the content of these values and their impact on the day-to-day practices of managers. The article will proceed through three stages. The first provides a short review of the literature regarding the nature of research in the field of volunteer management. This is followed by a presentation of results from an exploratory study of how managers’ call for authentic relationships has specific consequences for how voluntary social care becomes an object of their management. These questions will be investigated among managers in four different organizational settings in Denmark, which organize voluntary social care in relation to children, the elderly, young people with mental health problems and hospital patients respectively. The article concludes by discussing the kinds of challenges and dilemmas that these values and expectations bring about.