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Investigating Discretionary Environmental Enforcement: a pilot experiment

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Author Info
Germani, Anna Rita
Morone, Andrea
Morone, Piergiuseppe

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Abstract

In this work, we conducted a laboratory experiment in order to test the findings of a theoretical environmental enforcement model played as a strategic game where the firm’s behavior is influenced by the course of actions discretionally undertaken by both the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Justice (DOJ). Our experimental findings suggest that the presence of the DOJ can be counterproductive in increasing social welfare, since it implies solely additional enforcement costs, which, in turn, might reduce the probability of conducting inspections by the EPA without affecting the probability of firm’s compliance.

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File URL: http://mpra.ub.uni-muenchen.de/12735/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 12735.

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Date of creation: Jan 2009
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Handle: RePEc:pra:mprapa:12735

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Related research
Keywords: classroom experiments; environmental enforcement; environmental economics;

Find related papers by JEL classification:
Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General

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  1. Polinsky, A. Mitchell & Shavell, Steven, 1984. "The optimal use of fines and imprisonment," Journal of Public Economics, Elsevier, vol. 24(1), pages 89-99, June. [Downloadable!] (restricted)
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  2. A. Mitchell Polinsky & Steven Shavell, 2000. "The Economic Theory of Public Enforcement of Law," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 45-76, March. [Downloadable!] (restricted)
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  3. B. Arruñada & M. Casari, 2007. "How enforcement institutions affect markets ," Working Papers 616, Dipartimento Scienze Economiche, Universita' di Bologna. [Downloadable!]
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  4. Nuno Garoupa, 2000. "Optimal Magnitude and Probability of Fines," Economics Working Papers 454, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
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  5. Stigler, George J, 1970. "The Optimum Enforcement of Laws," Journal of Political Economy, University of Chicago Press, vol. 78(3), pages 526-36, May-June. [Downloadable!] (restricted)
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  6. Garoupa, Nuno, 1997. " The Theory of Optimal Law Enforcement," Journal of Economic Surveys, Blackwell Publishing, vol. 11(3), pages 267-95, September. [Downloadable!] (restricted)
  7. Shavell, Steven, 1993. "The Optimal Structure of Law Enforcement," Journal of Law & Economics, University of Chicago Press, vol. 36(1), pages 255-87, April.
  8. Steven Shavell, 2003. "Economic Analysis of the General Structure of the Law," NBER Working Papers 9699, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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