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Addressing Environmental Justice through In-Kind Court Settlements

Author

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  • Pamela Campa
  • Lucija Muehlenbachs

Abstract

In US environmental court cases, a cash penalty can be mitigated if a defendant volunteers to undertake an in-kind project, such as retrofitting school buses or building a public park. A goal of the policy is to address environmental justice concerns for low-income and minority populations, yet the historical record shows in-kind settlements most likely occur in cases involving high-income, majority-White communities. A choice experiment reveals that the public prefers in-kind settlements over cash, and a randomized survey reveals in-kind settlements improve the public's view of a violating firm, consistent with our finding of positive stock market reactions to in-kind settlements.

Suggested Citation

  • Pamela Campa & Lucija Muehlenbachs, 2024. "Addressing Environmental Justice through In-Kind Court Settlements," American Economic Journal: Economic Policy, American Economic Association, vol. 16(1), pages 415-446, February.
    • Handle: RePEc:aea:aejpol:v:16:y:2024:i:1:p:415-46
    DOI: 10.1257/pol.20210432
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    More about this item

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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