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Corruption in environmental policy: the case of waste

Berardino Cesi (), Alessio D’Amato () and Mariangela Zoli
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Berardino Cesi: University of Rome “Tor Vergata”
Alessio D’Amato: University of Rome “Tor Vergata”, and SEEDS

Authors registered in the RePEc Author Service: Alessio D'Amato ()

Economia Politica: Journal of Analytical and Institutional Economics, 2019, vol. 36, issue 1, No 4, 65-78

Abstract: Abstract This paper investigates interactions between waste and enforcement policies in the presence of a corruptible bureaucrat. We set up a repeated game obtained by an infinite repetition of a three stage game, where a firm producing illegal waste can bribe a bureaucrat in charge of monitoring its disposal choices. The bureaucrat may accept or not the bribe and chooses whether to hide illegal waste disposal to a national waste authority. We study conditions under which corruption can arise in equilibrium, and find that illegal disposal is larger under corruption, while, surprisingly, the bribe does not necessarily decrease with the punishment for detected corruption. Finally, our analysis suggests that increasing the interactions between the regulated firm and the bureaucrat increases illegal disposal via corruption.

Keywords: Waste management; Illegal disposal; Corruption; Enforcement (search for similar items in EconPapers)
JEL-codes: D73 K42 Q53 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (4)

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DOI: 10.1007/s40888-017-0087-x

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