The Objective of an Environmental Regulatory Agency
Geum Soo Kim and
William Neilson ()
Additional contact information
Geum Soo Kim: Hoseo University
Korean Economic Review, 2001, vol. 17, 393-400
The objective of an environmental regulatory agency in charge of enforcing an environmental standard is studied. It is assumed that the standard and the agency's budget are set by an overseeing authority. It is found that depending on the standard and the budget given to the agency, the agency may or may not behave as if it minimizes noncompliance, even though its true objective is to maximize total profit minus damages. It is also shown that when the higher level agency sets the standard and enforcement budget to maximize social welfare, the agency acts as if it minimizes noncompliance.
Keywords: Environmental regulation; enforcement; pollution standards (search for similar items in EconPapers)
JEL-codes: Q28 K42 L51 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kea:keappr:ker-200112-17-2-12
Access Statistics for this article
Korean Economic Review is currently edited by Kyung Hwan Baik
More articles in Korean Economic Review from Korean Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by KEA ().