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Can Consumers Enforce Environmental Regulations? The Role of the Market in Hazardous Waste Compliance

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  • Sarah L. Stafford

    (Department of Economics, College of William and Mary)

Abstract

To assess the role that consumers can play in encouraging environmental compliance, we examine the U.S. hazardous waste management industry to determine (1) whether environmental performance affects consumer demand and (2) whether markets affect compliance behavior. We find that noncompliance does decrease demand, at least in the short-term. While we do not find any evidence that market size affects compliance, local competition does appear to increase compliance. However, as competition becomes less localized, it has a smaller, if any, effect. Finally, regardless of the pressures exerted by consumers to comply, commercial managers are more likely to violate than on-site managers.

Suggested Citation

  • Sarah L. Stafford, 2005. "Can Consumers Enforce Environmental Regulations? The Role of the Market in Hazardous Waste Compliance," Working Papers 19, Department of Economics, College of William and Mary.
    • Handle: RePEc:cwm:wpaper:19
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    File URL: http://economics.wm.edu/wp/cwm_wp19.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Commercial Environmentalism; Compliance; Enforcement; Hazardous Waste; Market Size; Competition;
    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
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory

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