Accidents Waiting to Happen: Liability Policy and Toxic Pollution Releases

David Austin (david.austin@cbo.gov) and Anna Alberini

RFF Working Paper Series from Resources for the Future

Abstract: Proponents of environmental policies based on liability assert that strict liability imposed on polluters induces firms to handle hazardous wastes properly. We run regressions relating unintended pollution releases to strict liability imposed on polluters, exploiting variation across states and over time in the liability provisions of state mini-Superfund laws. Strict liability reduces the frequency and severity of pollution releases, provided it is modeled endogenously with the latter. Its effects vary with firm size. Partially sheltered from liability, small firms may have specialized in riskier production processes, but their number has not necessarily grown in response to the states’ liability policy.

Keywords: strict liability; negligence; hazardous waste; state environmental policy; endogenous policy adoption (search for similar items in EconPapers)
JEL-codes: D72 K13 Q28 (search for similar items in EconPapers)
Date: 2001-04-01
New Economics Papers: this item is included in nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Accidents Waiting to Happen: Liability Policy and Toxic Pollution Releases (2002)
Working Paper: Accidents Waiting to Happen: Liability Policy and Toxic Pollution Releases (2001)
Working Paper: Accidents Waiting to Happen: Liability Policy and Toxic Pollution Releases (1999)
Working Paper: Accidents Waiting to Happen: Liability Policy and Toxic Pollution Releases (1999)
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