Implementing Environmental Regulation: An Inter-industry Analysis

Christopher Decker ()
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Christopher Decker: University of Nebraska, Omaha

Eastern Economic Journal, 2006, vol. 32, issue 1, 47-66

Abstract: Many studies show that inspections (or the threat there of) promote compliance with environmental law. Therefore, it is important to understand what influences inspections. Existing research tends to focus on plant characteristics when explaining inspections, often reporting conflicting results. In this paper I suggest that regulators may respond to industry-level attributes when deciding whom to inspect. I find that industries that garner a larger share of a state’s manufacturing employment are also inspected less frequently. Moreover, the effect is not limited to employment. Industries garnering a larger share of a state’s manufacturing gross state product are also inspected less frequently.

Date: 2006
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