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Truth or Consequences? Enforcing Pollution Standards

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Author Info
McKenna, C.J.
Livernois, J.

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Abstract

Evidence suggests that a surprisingly large fraction of firms comply with pollution emission standards even though expected penalities for noncompliance are low. We offer an explanation of this puzzle by extending the standard model of enforcement to include a self-seporting requirement and enforcement power.

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Publisher Info
Paper provided by University of Guelph, Department of Economics in its series Working Papers with number 1996-7.

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Length: 28 pages
Date of creation: 1996
Date of revision:
Handle: RePEc:gue:guelph:1996-7

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Related research
Keywords: POLLUTION; ENVIRONMENTAL POLICY; REGULATION;

Other versions of this item:

Find related papers by JEL classification:
D62 - Microeconomics - - Welfare Economics - - - Externalities
D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information
L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Guerrero, Santiago & Innes, Robert, 2008. "Statutory Rewards to Environmental Self-Auditing: Do They Reduce Pollution and Save Regulatory Costs? Evidence from a Cross-State Panel," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6204, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  2. Arguedas, Carmen, 2005. "Pollution standards, costly monitoring and fines," Discussion Paper 9, Tilburg University, Center for Economic Research. [Downloadable!]
  3. John Spraggon, 1998. "Exogenous Targeting Instruments as a Solution to Group Moral Hazards," Department of Economics Working Papers 1998-01, McMaster University. [Downloadable!]
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  4. Huennemeyer, Anne-Juliane & McKitrick, Ross & Rollins, Kimberly S., 1999. "Optimal Compensation For Endangered Species Protection Under Asymmetric Information," 1999 Annual meeting, August 8-11, Nashville, TN 21693, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  5. maurice moffett & alok k. bohara & kishore gawande, 2005. "Governance and Performance: Theory-Based Evidence from US Coast Guard Inspections," Public Economics 0505002, EconWPA. [Downloadable!]
  6. Sarah L. Stafford, 2006. "Self-Policing in a Targeted Enforcement Regime," Working Papers 26, Department of Economics, College of William and Mary. [Downloadable!]
  7. Nyborg, Karine & Telle, Kjetil, 2003. "The Role of Warnings in Regulation: Keeping Control with Less Punishment," Memorandum 24/2003, Oslo University, Department of Economics. [Downloadable!]
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  8. Arguedas, Carmen & Rousseau, Sandra, 2008. "Learning about compliance under asymmetric information," Working Papers in Economic Theory 2008/02, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History). [Downloadable!]
    Other versions:
  9. Arguedas, Carmen, 2007. "To Comply or Not To Comply? Pollution Standard Setting Under Costly Monitoring and Sanctioning," Working Papers in Economic Theory 2007/13, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History). [Downloadable!]
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  10. Sinn, Hans-Werner, 1999. "Inflation and Welfare: Comment on Robert Lucas," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  11. Nyborg, Karine & Telle, Kjetil, 2004. "A dissolving paradox: Firms’ compliance to environmental regulation," Memorandum 02/2004, Oslo University, Department of Economics. [Downloadable!]
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