IDEAS home Printed from https://ideas.repec.org/a/kea/keappr/ker-200112-17-2-12.html
   My bibliography  Save this article

The Objective of an Environmental Regulatory Agency

Author

Listed:
  • Geum Soo Kim

    (Hoseo University)

  • William S. Neilson

    (Texas A&M University)

Abstract

The objective of an environmental regulatory agency in charge of enforcing an environmental standard is studied. It is assumed that the standard and the agency's budget are set by an overseeing authority. It is found that depending on the standard and the budget given to the agency, the agency may or may not behave as if it minimizes noncompliance, even though its true objective is to maximize total profit minus damages. It is also shown that when the higher level agency sets the standard and enforcement budget to maximize social welfare, the agency acts as if it minimizes noncompliance.

Suggested Citation

  • Geum Soo Kim & William S. Neilson, 2001. "The Objective of an Environmental Regulatory Agency," Korean Economic Review, Korean Economic Association, vol. 17, pages 393-400.
    • Handle: RePEc:kea:keappr:ker-200112-17-2-12
    as

    Download full text from publisher

    File URL: http://keapaper.kea.ne.kr/RePEc/kea/keappr/KER-200112-17-2-12.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Environmental regulation; enforcement; pollution standards;
    All these keywords.

    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
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kea:keappr:ker-200112-17-2-12. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: KEA (email available below). General contact details of provider: https://edirc.repec.org/data/keaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.