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Self-Policing in a Targeted Enforcement Regime

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  • Sarah L. Stafford

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    (Department of Economics, College of William and Mary)

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    Abstract

    This paper adds to the debate over whether self-policing can increase environmental protection by considering an aspect of self-policing that has been ignored in previous models Ð that self-policing may influence future enforcement. The model combines self-policing with targeted enforcement and allows for both deliberate and inadvertent violations. As expected, rewarding self-policers with more lenient future enforcement increases auditing, remediation, and disclosure of inadvertent violations. Self-policing can also serve as a complement to deliberate compliance and can thus further increase environmental performance. However, under reasonable conditions self-policing can be a substitute for deliberate compliance and could therefore be detrimental to environmental protection.

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    File URL: http://economics.wm.edu/wp/cwm_wp26.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 26.

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    Length: 32 pages
    Date of creation: 22 Feb 2006
    Date of revision:
    Handle: RePEc:cwm:wpaper:26

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    Related research

    Keywords: Self-Policing; Environmental Audit; Enforcement; Targeting; Compliance;

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    References

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    1. Heyes, Anthony G., 1996. "Cutting environmental penalties to protect the environment," Journal of Public Economics, Elsevier, vol. 60(2), pages 251-265, May.
    2. Innes, Robert, 1999. "Remediation and self-reporting in optimal law enforcement," Journal of Public Economics, Elsevier, vol. 72(3), pages 379-393, June.
    3. Harford, Jon D. & Harrington, Winston, 1991. "A reconsideration of enforcement leverage when penalties are restricted," Journal of Public Economics, Elsevier, vol. 45(3), pages 391-395, August.
    4. Alexander Pfaff & Chris William Sanchirico, 2004. "Big field, small potatoes: An empirical assessment of EPA's self-audit policy," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 23(3), pages 415-432.
    5. Mishra, Birendra K. & Paul Newman, D. & Stinson, Christopher H., 1997. "Environmental regulations and incentives for compliance audits," Journal of Accounting and Public Policy, Elsevier, vol. 16(2), pages 187-214.
    6. Louis Kaplow & Steven Shavell, 1991. "Optimal Law Enforcement with Self-Reporting of Behavior," NBER Working Papers 3822, National Bureau of Economic Research, Inc.
    7. Friesen, Lana, 2006. "The social welfare implications of industry self-auditing," Journal of Environmental Economics and Management, Elsevier, vol. 51(3), pages 280-294, May.
    8. Eric Helland, 1998. "The Enforcement Of Pollution Control Laws: Inspections, Violations, And Self-Reporting," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 141-153, February.
    9. Friesen, Lana, 2003. "Targeting enforcement to improve compliance with environmental regulations," Journal of Environmental Economics and Management, Elsevier, vol. 46(1), pages 72-85, July.
    10. Raymond, Mark, 1999. "Enforcement leverage when penalties are restricted: a reconsideration under asymmetric information," Journal of Public Economics, Elsevier, vol. 73(2), pages 289-295, August.
    11. Innes, Robert, 2001. "Violator Avoidance Activities and Self-Reporting in Optimal Law Enforcement," Journal of Law, Economics and Organization, Oxford University Press, vol. 17(1), pages 239-56, April.
    12. McKenna, C.J. & Livernois, J., 1996. "Truth or Consequences? Enforcing Pollution Standards," Working Papers 1996-7, University of Guelph, Department of Economics and Finance.
    13. Livernois, John & McKenna, C. J., 1999. "Truth or consequences: Enforcing pollution standards with self-reporting," Journal of Public Economics, Elsevier, vol. 71(3), pages 415-440, March.
    14. Harrington, Winston, 1988. "Enforcement leverage when penalties are restricted," Journal of Public Economics, Elsevier, vol. 37(1), pages 29-53, October.
    15. Sarah L. Stafford, 2006. "Should You Turn Yourself In? The Consequences of Environmental Self-Policing," Working Papers 27, Department of Economics, College of William and Mary, revised 13 Jun 2006.
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    Cited by:
    1. Sarah L. Stafford, 2006. "Should You Turn Yourself In? The Consequences of Environmental Self-Policing," Working Papers 27, Department of Economics, College of William and Mary, revised 13 Jun 2006.

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