Regulator reputation, enforcement, and environmental compliance
Jay Shimshack and
Michael Ward
MPRA Paper from University Library of Munich, Germany
Abstract:
This paper explores empirically the impact of enforcement efforts on environmental compliance, focusing on the role of regulator reputation spillover effects. We find that, on the margin, the impact of a fine for water pollutant violations is about a two-thirds reduction in the statewide violation rate in the year following a fine. This large result obtains through the regulator’s enhanced reputation; the deterrence impact on other plants in a state is almost as strong as the impact on the sanctioned plant. Focusing only on the response of the sanctioned plant, as in previous studies, may therefore seriously underestimate the efficacy of fines and other sanctions. This paper also examines the relative effectiveness of monitoring and enforcement instruments. Non-monetary sanctions contribute no detected impact on compliance, and the marginal fine induces substantially greater compliance than the marginal inspection.
Keywords: Fines; Pollution; Environmental compliance; Environmental enforcement; Regulation; General deterrence; Water pollution (search for similar items in EconPapers)
JEL-codes: K32 Q53 Q58 (search for similar items in EconPapers)
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (166)
Published in Journal of Environmental Economics and Management 3.50(2005): pp. 519-540
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/25994/1/MPRA_paper_25994.pdf original version (application/pdf)
Related works:
Journal Article: Regulator reputation, enforcement, and environmental compliance (2005) 
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:pra:mprapa:25994
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().