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[ D] Environmental Agreements between industry and government have been a major tool of German climate policy. While industry strongly
favors this instrument, environmental NGOs and other stakeholders doubt their effectiveness to reduce greenhouse gas emissions. There
was an intensive debate in Germany about whether the reductions achieved in the 1990s by industry were just business as usual or were
caused by active measures implemented by companies. This question had become of major interest with the appearance of the proposal for
an EU-wide emissions trading regime brought forward by the Commission. The existence of the agreements in combination with the reductions
achieved so far were used by a large part of industry to oppose any efforts to introduce legally binding policy measures in this field.
With our research, we try to shed some light on these questions by analysing the incentive structure of this instrument and contributing to evaluations of its environmental effectiveness.
