Industrial Voluntary Agreements in Context

Voluntary agreements between government and industry involve negotiated targets with commitments to energy efficiency or pollution reductions and are supported by governmental policies and programs. By offering flexibility, voluntary programs hope to inspire innovation that will maximize the impact of a program while minimizing the cost of achieving the target. This report reviews the different approaches and elements of these agreements, considers past domestic and international experiences, and discusses the strengths and weakness of the approaches. A basis for future dialog is also suggested.