Do polluters really want mandatory regulation?

Conventional wisdom suggests that profit seeking companies will not voluntarily subject themselves to restrictions that will reduce profits.  Why then would CEO’s of large international corporations argue for mandatory limits on carbon emissions?  That’s exactly what happened according to a June 12 article in the Washington Post (GOP Warms Up to Emissions Cuts):

...General Electric chief executive Jeffrey R. Immelt said his company is prepared for mandatory limits and intends to double its revenue from environmentally friendly technologies and products to $20 billion within five years.

"You get a gut feeling sometimes as a business leader that we should be preparing ourselves, in this case GE, for fuel constraints," Immelt said in an interview Friday.

Cinergy chief executive James E. Rogers, whose midwestern utility recently merged with Duke Energy and is the fifth-largest American consumer of coal, testified Wednesday before the House Science Committee that his company backs mandatory limits on carbon emissions.

The casual observer might argue that these CEOs are shooting themselves in the foot.  Regulation always reduces profits.  By arguing for mandatory emissions controls, they are arguing to reduce their own profits, right?

Suppose these CEOs have a strong suspicion that carbon emission controls are inevitable.  What would you do if you are running this company?  If you jump out in front and say you are in favor of the controls, you get a big public image boost.  Your stockholders are happy.  If the regulations are enacted you are no worse off than any other company in your industry.  If the regulations are not enacted you look like the ‘environmentally-friendly’ company and might win over a few customers.  As the Washington Post article continues:

[Rogers, Cinergy CEO] recalled that his former law partner, Robert Strauss, "used to say, 'When you see a parade form on an issue in Washington, you have two choices: You can throw your body in front of it and let them walk over you, or you can jump in front of the parade and pretend it's yours.' "

Do companies really support mandatory emissions controls that will most likely reduce their profits?  Probably not.  Do they have an economic incentive to argue in favor of such controls if they are inevitable?  Absolutely.