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Does a stricter enforcement policy protect the environment? A political economy perspective

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  • Cheng, Chu-Chuan
  • Lai, Yu-Bong
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    Abstract

    The conventional wisdom suggests that a stricter enforcement policy can reduce pollution emissions. Nevertheless, this present paper argues that this assertion does not necessarily hold if the stringency of environmental regulation is subject to the influence of lobbying. A stricter enforcement policy increases the polluters’ expected financial burden, and induces them to exert greater political pressure on reducing the stringency of environmental regulation, thereby resulting in a larger amount of pollution emissions. We also show that tightening the enforcement policy can reduce efficiency. We highlight the possibility of policymaking being misguided due to overlooking the political effect of enforcement policy.

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    File URL: http://www.sciencedirect.com/science/article/pii/S092876551200019X
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    Bibliographic Info

    Article provided by Elsevier in its journal Resource and Energy Economics.

    Volume (Year): 34 (2012)
    Issue (Month): 4 ()
    Pages: 431-441

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    Handle: RePEc:eee:resene:v:34:y:2012:i:4:p:431-441

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    Web page: http://www.elsevier.com/locate/inca/505569

    Related research

    Keywords: Asymmetric information; Compliance; Enforcement policy; Environmental policy; Interest groups; Lobbying; Political economy;

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    References

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    Cited by:
    1. Menegaki, Angeliki N. & Ozturk, Ilhan, 2013. "Growth and energy nexus in Europe revisited: Evidence from a fixed effects political economy model," Energy Policy, Elsevier, vol. 61(C), pages 881-887.

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