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Regulating hazardous wastes under U.S. environmental federalism: The role of state resources

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  • Blundell, Wesley
  • Evans, Mary F.
  • Stafford, Sarah L.

Abstract

We explore the extent to which variation in states' resources devoted to environmental protection leads to variation in environmental outcomes, specifically the monitoring and enforcement of large hazardous waste facilities regulated under the Resource Conservation and Recovery Act (RCRA). Results from our instrumental variables regressions suggest that the average state responds to a reduction in its per-facility environmental agency budget by decreasing the fraction of large RCRA facilities receiving inspections and enforcement actions. We also find evidence that a reduction in a state's environmental budget may result in a substitution away from resource-intensive on-site inspections to lower-cost off-site inspections. If the latter type of inspection is relatively less effective in detecting violations, then this substitution is likely to lead to poorer environmental outcomes. Overall our results suggest that decreases in EPA funding for state environmental agencies and further devolution of responsibility for environmental programs to states may result in lower levels of environmental protection in some areas.

Suggested Citation

  • Blundell, Wesley & Evans, Mary F. & Stafford, Sarah L., 2021. "Regulating hazardous wastes under U.S. environmental federalism: The role of state resources," Journal of Environmental Economics and Management, Elsevier, vol. 108(C).
    • Handle: RePEc:eee:jeeman:v:108:y:2021:i:c:s0095069621000474
    DOI: 10.1016/j.jeem.2021.102464
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    References listed on IDEAS

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    1. Mary F. Evans & Scott M. Gilpatric & Jay P. Shimshack, 2018. "Enforcement Spillovers: Lessons from Strategic Interactions in Regulation and Product Markets," Journal of Law and Economics, University of Chicago Press, vol. 61(4), pages 739-769.
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    Cited by:

    1. Colmer, Jonathan Mark & Evans, Mary F. & Shimshack, Jay, 2023. "Environmental citizen complaints," LSE Research Online Documents on Economics 121326, London School of Economics and Political Science, LSE Library.
    2. Shimshack, Jay P. & Ward, Michael B., 2022. "Costly sanctions and the treatment of frequent violators in regulatory settings," Journal of Environmental Economics and Management, Elsevier, vol. 116(C).
    3. Yinuo Wang & Fengxiu Zhou & Huwei Wen, 2023. "Does Environmental Decentralization Promote Renewable Energy Development? A Local Government Competition Perspective," Sustainability, MDPI, vol. 15(14), pages 1-18, July.
    4. Lida Han & Xi Wu & Peng Tang, 2023. "Does Environmental Decentralization Affect the Supply of Urban Construction Land? Evidence from China," Land, MDPI, vol. 12(3), pages 1-18, March.

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    More about this item

    Keywords

    Q53; Q58; H76; H77;
    All these keywords.

    JEL classification:

    • 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
    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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