Accidents Waiting to Happen: Liability Policy and Toxic Pollution Releases

David H. Austin () and Anna Alberini

Discussion Papers 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: Q28 D72 K13 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-env
Date: 2001-04-01
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http://www.rff.org/documents/RFF-DP-01-06.pdf (application/pdf)

Related works:
Working Paper: Accidents Waiting to Happen: Liability Policy and Toxic Pollution Releases (1999)
Journal Article: Accidents Waiting to Happen: Liability Policy and Toxic Pollution Releases (2002)
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Persistent link: http://EconPapers.repec.org/RePEc:rff:dpaper:dp-01-06

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