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Identification of the Factors That Affect the Environmental Administrative Burden for Businesses

Author

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  • Žiga Kotnik

    (Chair of Economics and Public Sector Management, Faculty of Public Administration, University of Ljubljana, SI-1000 Ljubljana, Slovenia)

  • Maja Klun

    (Chair of Economics and Public Sector Management, Faculty of Public Administration, University of Ljubljana, SI-1000 Ljubljana, Slovenia)

  • Renata Slabe-Erker

    (Institute for Economic Research, SI-1000 Ljubljana, Slovenia)

Abstract

Environmental regulations bring social benefits and contribute to lessening environmental damage. At the same time, due to the rapidly changing and complex environmental legislation, businesses incur costs, including administrative burdens. The article presents quantitative evidence on the factors that affect the compliance costs of environmental regulations. For this purpose, we used a binary model of logistic regression with the following predictors: enterprise characteristics, the relevance of environmental regulations for business operations, and the impact of environmental stimulus measures on compliance costs. The results of the study suggest that medium-sized enterprises are less likely to experience the environmental administrative burden than small enterprises. However, no difference has been found between large and small enterprises. Further, we show that environmental consents are an important determinant of the environmental administrative burden and that financial environmental measures can have a positive impact thereon.

Suggested Citation

  • Žiga Kotnik & Maja Klun & Renata Slabe-Erker, 2020. "Identification of the Factors That Affect the Environmental Administrative Burden for Businesses," Sustainability, MDPI, vol. 12(16), pages 1-15, August.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:16:p:6555-:d:398517
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