Pollution abatement with limited enforcement power and citizen suits
AbstractFederal environmental laws in the U.S. can be enforced by government agencies or by private parties through citizen suits against polluters. Here, I extend the standard enforcement model to examine the role played by citizen suits. The main results from the paper suggest that in a model with limited enforcement power and citizen suits the regulator fully exercises his enforcement power when the expected penalty from a citizen suit is low, but increases his reliance on citizen suits as the expected penalty rises. Whether an enforcement regime that allows private enforcement is efficient depends not only on the relative costs of private and agency enforcement, but also on the changes in inspection costs that may be caused by private enforcement and the expected penalty from losing a citizen suit. These results suggest that in practice private enforcement may lower social costs as long as relatively inexpensive agency enforcement options, such as administrative proceedings, do not preclude citizen suits. Copyright Springer Science+Business Media, LLC 2007
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Bibliographic InfoArticle provided by Springer in its journal Journal of Regulatory Economics.
Volume (Year): 31 (2007)
Issue (Month): 1 (February)
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Web page: http://www.springerlink.com/link.asp?id=100298
Pollution control; Environmental regulation; Compliance; Self-reporting; Enforcement; Citizen suits; D62; L51; K32; K42; Q25;
Find related papers by JEL classification:
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
- K32 - Law and Economics - - Other Substantive Areas of Law - - - Environmental, Health, and Safety Law
- K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
- Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
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