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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

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    (Department of Economics, College of William and Mary)

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    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.

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    File URL: http://economics.wm.edu/wp/cwm_wp19.pdf
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    Bibliographic Info

    Paper provided by Department of Economics, College of William and Mary in its series Working Papers with number 19.

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    Length: 34 pages
    Date of creation: 28 Jun 2005
    Date of revision:
    Handle: RePEc:cwm:wpaper:19

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    Related research

    Keywords: Commercial Environmentalism; Compliance; Enforcement; Hazardous Waste; Market Size; Competition;

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    1. Anna Alberini & John Bartholomew, 1999. "The Determinants Of Hazardous Waste Disposal Choice: An Empirical Analysis Of Halogenated Solvent Waste Shipments," Contemporary Economic Policy, Western Economic Association International, vol. 17(3), pages 309-320, 07.
    2. Sigman, Hilary, 1996. "The Effects of Hazardous Waste Taxes on Waste Generation and Disposal," Journal of Environmental Economics and Management, Elsevier, vol. 30(2), pages 199-217, March.
    3. Lanoie, Paul & Laplante, Benoit & Roy, Maite, 1998. "Can capital markets create incentives for pollution control?," Ecological Economics, Elsevier, vol. 26(1), pages 31-41, July.
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    7. Thomas Bue Bjorner & Lars Garn Hansen & Clifford S. Russell, 2002. "Environmental Labelling and Consumer's Choice - An Empirical Analysis of the Effect of the Nordic Swan," Vanderbilt University Department of Economics Working Papers 0203, Vanderbilt University Department of Economics.
    8. Seema Arora & Timothy N. Cason, 1996. "Why Do Firms Volunteer to Exceed Environmental Regulations? Understanding Participation in EPA's 33/50 Program," Land Economics, University of Wisconsin Press, vol. 72(4), pages 413-432.
    9. Anton, W.R.Q.Wilma Rose Q. & Deltas, George & Khanna, Madhu, 2004. "Incentives for environmental self-regulation and implications for environmental performance," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 632-654, July.
    10. Badrinath, S G & Bolster, Paul J, 1996. "The Role of Market Forces in EPA Enforcement Activity," Journal of Regulatory Economics, Springer, vol. 10(2), pages 165-81, September.
    11. Teisl, Mario F. & Roe, Brian & Hicks, Robert L., 2002. "Can Eco-Labels Tune a Market? Evidence from Dolphin-Safe Labeling," Journal of Environmental Economics and Management, Elsevier, vol. 43(3), pages 339-359, May.
    12. Hamilton James T., 1995. "Pollution as News: Media and Stock Market Reactions to the Toxics Release Inventory Data," Journal of Environmental Economics and Management, Elsevier, vol. 28(1), pages 98-113, January.
    13. Poirier, Dale J., 1980. "Partial observability in bivariate probit models," Journal of Econometrics, Elsevier, vol. 12(2), pages 209-217, February.
    14. Jean H. Peretz & Robert A. Bohm & Philip D. Jasienczyk, 1997. "Environmental policy and the reduction of hazardous waste," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 16(4), pages 556-574.
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