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Emission Standards and Stochastic Waste Load

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  • Runar Brannlund
  • Karl-Gustaf Lofgren
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    Abstract

    Empirical work regarding the impact of environmental regulations on firm behavior has been developed under the assumption that emissions of pollutants are deterministic. The implication is that the regulation is effective only when the constraint is exactly satisfied. In real life, however, it is seldom the case that emission constraints are exactly satisfied. The purpose of this paper is to find out whether regulation schemes are ineffective, or whether the structure is an optimal reaction to random fluctuations in emissions. The Swedish pulp and paper industry is used as an empirical illustration.

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    Bibliographic Info

    Article provided by University of Wisconsin Press in its journal Land Economics.

    Volume (Year): 72 (1996)
    Issue (Month): 2 ()
    Pages: 218-230

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    Handle: RePEc:uwp:landec:v:72:y:1996:i:2:p:218-230

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    Web page: http://le.uwpress.org/

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    Cited by:
    1. Jay P. Shimshack & Michael B. Ward, 2007. "Enforcement and Over-Compliance," Discussion Papers Series, Department of Economics, Tufts University, Department of Economics, Tufts University 0706, Department of Economics, Tufts University.
    2. Tommy Lundgren, 2003. "A Real Options Approach to Abatement Investments and Green Goodwill," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 25(1), pages 17-31, May.
    3. Mickwitz, Per, 2003. "Is it as bad as it sounds or as good as it looks? Experiences of Finnish water discharge limits," Ecological Economics, Elsevier, Elsevier, vol. 45(2), pages 237-254, June.
    4. Earnhart, Dietrich, 2007. "Effects of permitted effluent limits on environmental compliance levels," Ecological Economics, Elsevier, Elsevier, vol. 61(1), pages 178-193, February.
    5. Holstein, Fredrik & Gren, Ing-Marie, 2013. "Violation of environmental regulations in Sweden: Economic motives, environmental attitudes, and social capital," Working Paper Series, Department Economics, Swedish University of Agricultural Sciences 2013:3, Department Economics, Swedish University of Agricultural Sciences.
    6. Bengt Kristrom & Tommy Lundgren, 2003. "Abatement investments and green goodwill," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 35(18), pages 1915-1921.

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