Two Time Scale Analysis of Policy-Mix of Voluntary Agreements and Regulations: Involvement of Small and Medium-sized Companies into Local Climate Change Policy Comparative Analysis of Yokohama, Munich and Toronto
Voluntary Agreements faces strong criticism by Political Scientists in terms of its weak goal-setting power and Economists, on the other hand, are increasingly interested in VAs in terms of its cost effectiveness. It is interesting to think why there are two controversial opinions on VAs. To solve this problem, we should understand VA is a complementary measure and it must be implemented in the form of policy-mix with other (mainly mandatory) policy measure. Then a question goes on as to under which condition the potential of VAs, which is to reduce transaction costs, can be fully used. Policy-mix gathers the attention from political scientists, however many researchers discuss about implementation of policy-mix at the same time. The need of research on policy-mix in two-time scale is increasing.