TY - JOUR AU - List,John A. AU - Sturm,Daniel M. TI - How Elections Matter: Theory and Evidence from Environmental Policy JF - National Bureau of Economic Research Working Paper Series VL - No. 10609 PY - 2004 Y2 - July 2004 UR - http://www.nber.org/papers/w10609 L1 - http://www.nber.org/papers/w10609.pdf N1 - Author contact info: John List Department of Economics University of Chicago 1126 East 59th Chicago, IL 60637 Tel: 301/405-1288 Fax: 301/314-9091 E-Mail: jlist@uchicago.edu AB - In this paper we explore to what extent secondary policy issues are influenced by electoral incentives. We develop a political agency model in which a politician decides on both a frontline policy issue, such as the level of public spending, and a secondary policy issue, such as environmental policy. The model shows under which conditions the incumbent finds it worthwhile to manipulate the secondary policy to attract additional votes to his platform. We test the predictions of the model using state-level panel data on Gubernatorial environmental policy choices over the years 1960-2000. In contrast to the popular view that choices on secondary policy instruments are largely determined by lobbying, we find strong effects of electoral incentives on environmental policy. ER -