Damages

About: Damages is a research topic. Over the lifetime, 9365 publications have been published within this topic receiving 89750 citations. The topic is also known as: compensation award.

Is Pollution Value-Maximizing? The DuPont Case

Abstract: DuPont, one of the most respectable U.S. companies, caused environmental damage that ended up costing the company around a billion dollars. By using internal company documents disclosed in trials we rule out the possibilities that this bad outcome was due to ignorance, an unexpected realization, or a problem of bad governance. The documents rather suggest that the polluting was a rational decision: under reasonable probabilities of detection, polluting was ex-ante optimal from the company’s perspective, even if the cost of preventing pollution was lower than the cost of the health damages produced. We then examine why different mechanisms of control – legal liability, regulation, and reputation – all failed to deter a behavior that was inefficient from a social point of view. One common reason for the failures of deterrence mechanisms is that the company controls most of the information and its release. We then sketch potential ways to mitigate this problem.

The social cost of lobbying over climate policy

Abstract: Domestic political processes shape climate policy. In particular, there is increasing concern about the role of political lobbying over climate policy. This paper examines how lobbying spending on the Waxman–Markey bill, the most prominent and promising United States climate regulation so far, altered its likelihood of being implemented. We combine data from comprehensive United States lobbying records with an empirical method for forecasting the policy’s effect on the value of publicly listed firms. Our statistical analysis suggests that lobbying by firms expecting losses from the policy was more effective than lobbying by firms expecting gains. Interpreting this finding through a game-theoretic model, we calculate that lobbying lowered the probability of enacting the Waxman–Markey bill by 13 percentage points, representing an expected social cost of US$60 billion (in 2018 US dollars). Our findings also suggest how future climate policy proposals can be designed to be more robust to political opposition. Political interests play a key role in the passage of climate policy. This study quantifies that political lobbying reduced the probability of enacting the Waxman–Markey bill in the United States by 13 percentage points, representing US$60 billion in expected climate damages.

The effects of private damage claims on cartel stability: Experimental evidence

Abstract: Private damage claims against cartels may have negative effects on leniency: whereas whistleblowers obtain full immunity regarding the public cartel fines, they have no or only restricted protection against private third-party damage claims. This may stabilize cartels. We run an experiment to study this issue. Firms choose whether to join a cartel, may apply for leniency afterwards, and then potentially face private damages. We find that the implementation of private damage claims reduces cartel formation but makes cartels indeed more stable. The negative effect of damages is avoided in a novel setting where the whistleblower is also protected from damages.

Balances of Water, Carbon, Nitrogen and Phosphorus in Australian Landscapes: (1) Project Description and Results

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Envy at work.

Abstract: Is a colleague's success eating away at you? Beware: This deadly sin damages relationships, disrupts teams, and undermines organizational success. Most of all, it harms your own performance.