A Voluntary Agreement Between Two Parties

Despite the existence of the law in Hungary, the details regulation has not yet been implemented at the time of the investigation. Two final examples illustrate the continued economic relevance of this « voluntary » policy. First, let`s look at the price commitment that the EU has negotiated with China regarding the import of solar modules. At that time, it was an important trade event from the Chinese point of view, since solar modules accounted for 7% of china`s total exports to the EU in 2012.bk Secondly, although VER are not used frequently at present, they were only used in a major industry in 2008. Following the expiry of the MFA in 2005, the US and the EU quickly negotiated a number of VER for Chinese textile and clothing exports to their markets for the period 2005-08.bl Voluntary environmental performance is an attractive term. For a variety of reasons, some companies seem to be doing on their own what they would have done in the past only under the threat of the law. As has already been said, one of the reasons for voluntary action could be the fear of stricter regulation. The action of companies can perhaps be seen as an experiment. After many years of actively opposing many environmental requirements with limited success, some companies seem to be wondering if there are entrepreneurial opportunities to be green. While some anecdotal evidence indicates that companies have increased their profits by improving their environmental performance, other anecdotes indicate that these « win-win » opportunities are limited (Lyon and Maxwell (1999)). Ultimately, the evidence at this point does not support the idea that polluters will significantly reduce their wastewater without the state rules and programs that encourage this behavior.

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