Candidate eco-labeling and senate campaign contributions

This paper analyzes campaign contributions from environmental political action committees (E-PACs) to Senate candidates. A two-stage empirical model of candidate donations and the likelihood of winning the election is developed that allows for endogeneity between donations and the expected election outcome. The results reveal that E-PACs choose to donate to candidates that are both likely to win the election and to advocate environmental positions once elected. Funding strategies differ for challengers and incumbents. Incumbent funding typically supports maintaining the existing level of environmental advocacy in the Senate by offering contributions for continued pro-environmental votes and other political support. Challenger funding is targeted at unseating vulnerable hostile incumbents. The results also suggest that E-PACs—such as the Sierra Club and the League of Conservation Voters—have been successful in influencing Senate election outcomes and promoting environmental advocacy in the Senate. E-PAC contributions act to “eco-label” candidates and contribute to their election success. The results also show that although moderate levels of environmental advocacy are beneficial to a candidate, voters reject what they perceive to be excessively “green” candidates.