Enforcement of pollution levies in China

Liguo Lin

Journal of Public Economics, 2013, vol. 98, issue C, 32-43

Abstract: This paper investigates how industrial plants react to inspections conducted by environmental authorities under the pollution levy (taxation) regulation in China. Contrary to studies in the United States and Canada (Magat and Viscusi, 1990; Laplante and Rilstone, 1996), and previous studies in China (Dasgupta et al., 2001), we find that inspections increase plants' self-reported pollution by 3.45%. We provide a model to analyze plants' strategic reactions to the pollution levy regulation in China. The model concludes that under the specific regulation, plants' actual pollution might increase with inspections. Our study provides a key policy implication that inspections by environmental authorities in China are effective for verifying plants' self-reported pollution but not for reducing their pollution.

Keywords: Enforcement; Inspections; Pollution levies; China (search for similar items in EconPapers)
JEL-codes: C33 C81 K32 K42 Q28 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S004727271200134X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:98:y:2013:i:c:p:32-43

DOI: 10.1016/j.jpubeco.2012.11.004

Access Statistics for this article

Journal of Public Economics is currently edited by R. Boadway and J. Poterba

More articles in Journal of Public Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().