Can consumers enforce environmental regulations? The role of the market in hazardous waste compliance
AbstractWe examine the U.S. hazardous waste management industry to assess the role that consumers play in encouraging environmental compliance. We first examine whether environmental performance affects consumer demand and find that noncompliance does decrease demand, at least in the short term. Next we consider whether market characteristics affect compliance behavior. While we do not find evidence that market size affects behavior, local competition does appear to increase compliance. However, as competition becomes less localized, it has a smaller effect. Finally, regardless of the pressures exerted by consumers to comply, commercial managers are less likely to be in compliance than on-site managers. 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
Commercial environmentalism; Compliance; Enforcement; Hazardous waste; Market size; Competition; Q28; K42; D21;
Find related papers by JEL classification:
- Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
- K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
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