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Environmental controls with corrupt bureaucrats

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  • Damania, Richard
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    Abstract

    Environmental regulations typify a large class of activities in the public sector where government agencies are required to monitor the degree of compliance. These tasks are usually delegated to bureaucrats who, as self-interested agents, may engage in corrupt behavior. Such problems abound, particularly in developing countries, where corruption is regarded as one of the major causes of environmental degradation. This paper investigates the implications of corruption for the optimal design of environmental regulations and analyses the interaction between the prosecution rate, monitoring rate, and fines. It is shown that even if corruption can be deterred the fact that it may occur substantially impedes the ability of a regulator to control environmentally degrading activities.

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    Bibliographic Info

    Article provided by Cambridge University Press in its journal Environment and Development Economics.

    Volume (Year): 7 (2002)
    Issue (Month): 03 (July)
    Pages: 407-427

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    Handle: RePEc:cup:endeec:v:7:y:2002:i:03:p:407-427_00

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    Cited by:
    1. Eleni Stathopoulou & Dimitrios Varvarigos, 2013. "Corruption, Entry and Pollution," Discussion Papers in Economics 13/21, Department of Economics, University of Leicester.
    2. Dimitrios Varvarigos, 2013. "Economic Growth, Health, and the Choice of Polluting Technologies: The Role of Bureaucratic Corruption," Discussion Papers in Economics 13/22, Department of Economics, University of Leicester.
    3. Iskandar, Deden Dinar & Wuenscher, Tobias & Badhuri, Anik, 2012. "The Determinants of Compliance on Environmental Tax: The Insights of Theoretical and Experimental Approaches Motivated by the Case of Indonesia," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 134977, Agricultural Economics Society.
    4. R. Quentin Grafton & Stephen Knowles, 2002. "Social Capital and National Environmental Performance: A Cross-sectional Analysis," Economics and Environment Network Working Papers 0206, Australian National University, Economics and Environment Network.
    5. Halkos, George & Tzeremes, Nickolaos, 2012. "Public sector transparency and countries’ environmental performance: A nonparametric analysis," MPRA Paper 39553, University Library of Munich, Germany.
    6. Lorenzo Pellegrini, 2007. "The Rule of The Jungle in Pakistan: A Case Study on Corruption and Forest Management in Swat," Working Papers 2007.91, Fondazione Eni Enrico Mattei.
    7. John K. Wilson & Richard Damania, 2003. "Corruption, Political Competition and Environmental Policy," School of Economics Working Papers 2003-09, University of Adelaide, School of Economics.
    8. Lorenzo Pellegrini & Reyer Gerlagh, 2005. "An Empirical Contribution to the Debate on Corruption,Democracy and Environmental Policy," Working Papers 2005.8, Fondazione Eni Enrico Mattei.
    9. Lorenzo Pellegrini & Reyer Gerlagh, 2005. "Are EU Environmental Policies Too Demanding for New Members States?," Working Papers 2005.46, Fondazione Eni Enrico Mattei.
    10. Elissaios Papyrakis, 2013. "Environmental Performance in Socially Fragmented Countries," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 55(1), pages 119-140, May.
    11. Kate Ivanova, 2007. "Corruption, illegal trade and compliance with the Montreal Protocol," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 38(4), pages 475-496, December.

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