Identification of the Factors That Affect the Environmental Administrative Burden for Businesses

Žiga Kotnik, Maja Klun and Renata Slabe-Erker
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Žiga Kotnik: Chair of Economics and Public Sector Management, Faculty of Public Administration, University of Ljubljana, SI-1000 Ljubljana, Slovenia
Maja Klun: Chair of Economics and Public Sector Management, Faculty of Public Administration, University of Ljubljana, SI-1000 Ljubljana, Slovenia
Renata Slabe-Erker: Institute for Economic Research, SI-1000 Ljubljana, Slovenia

Sustainability, 2020, vol. 12, issue 16, 1-15

Abstract: Environmental regulations bring social benefits and contribute to lessening environmental damage. At the same time, due to the rapidly changing and complex environmental legislation, businesses incur costs, including administrative burdens. The article presents quantitative evidence on the factors that affect the compliance costs of environmental regulations. For this purpose, we used a binary model of logistic regression with the following predictors: enterprise characteristics, the relevance of environmental regulations for business operations, and the impact of environmental stimulus measures on compliance costs. The results of the study suggest that medium-sized enterprises are less likely to experience the environmental administrative burden than small enterprises. However, no difference has been found between large and small enterprises. Further, we show that environmental consents are an important determinant of the environmental administrative burden and that financial environmental measures can have a positive impact thereon.

Keywords: compliance costs; environmental regulations; logistic regression; red tape (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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