The impact of voluntary programs on polluting behavior: Evidence from pollution prevention programs and toxic releases

Linda Bui and Samuel Kapon

Journal of Environmental Economics and Management, 2012, vol. 64, issue 1, 31-44

Abstract: We investigate how a class of voluntary environmental initiatives known as pollution prevention (“P2”) programs affect toxic pollution. We construct a data base of federal and state-level P2 programs and exploit variation in adoption dates and program characteristics to study their effects on facility-level releases. We find convincing evidence that these mechanisms alter polluter behavior. In particular, we find that (1) state P2 programs had a significant impact on average facility level toxic releases, reducing annual releases by 11–15%; (2) for every $100,000 of federal matching funds awarded for state P2 activities, average facility level releases in the recipient state declined on the order of 1–1.5%; (3) P2-induced reductions are significantly enhanced by information spillovers, diffused primarily via industry networks rather than geographic proximity; (4) facilities respond to technical assistance programs by reducing toxic releases, but only for substances that are not simultaneously regulated by formal command and control strategies; and (5) facilities respond to filing fees and non-reporting penalties by altering their toxic releases, but only for chemicals that are easily monitored by regulators.

Keywords: TRI; Information spillovers; Voluntary programs; Toxic pollution; Environmental regulation (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (29)

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Working Paper: The Impact of Voluntary Programs on Polluting Behavior: Evidence from Pollution Prevention Programs and Toxic Releases (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeeman:v:64:y:2012:i:1:p:31-44

DOI: 10.1016/j.jeem.2012.01.002

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Journal of Environmental Economics and Management is currently edited by M.A. Cole, A. Lange, D.J. Phaneuf, D. Popp, M.J. Roberts, M.D. Smith, C. Timmins, Q. Weninger and A.J. Yates

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