European companies are increasingly looking to join forces in the fight against global warming. To affect this much-needed change, these companies constantly pursue sustainability agreements that, among other things, set certain environmental standards, allow cooperation, and avoid first-mover disadvantages.
But how can sustainability be quantified in the context of competition cases? What tools do environmental economics provide to reasonably quantify sustainability benefits of agreements between companies that would like to become more sustainable?
Moving beyond the ongoing debate surrounding the role of sustainability in competition policy, such as the discussions in the European Commission (https://ec.europa.eu/competition/information/green_deal/index_en.html) and the Dutch ACM (https://www.acm.nl/en/publications/second-draft-version-guidelines-sustainability-agreements-opportunities-within-competition-law), Copenhagen Economics (Jasper Lutz and former colleague Adina Claici) has written an article outlining how economics can help quantify the sustainability benefits of agreements.
If you would like to know more on this topic, please do not hesitate to reach out to Jasper Lutz.
The paper has been published at Lexxion Publishers, see https://www.lexxion.eu/en/journals/core/.