Advanced Search
MyIDEAS: Login

Analysis of Firm Compliance with Multiple Environmental Regulations

Contents:

Author Info

  • Lirong Liu

    ()
    (Department of Economics and International Business, Sam Houston State University)

Registered author(s):

    Abstract

    When a firm is regulated under multiple environmental programs, its compliance behavior under these programs can be complementary or substituting—regulations of one program either increase or decrease firm compliance with other programs. This paper examines the existence and the nature of such cross program effects. A panel data model with panel corrected standard error (PCSE) is estimated using data on facilities regulated under both the air program (Clean Air Act, CAA) and the hazardous waste program (Reservation and Conservation Recovery Act, RCRA). Results show evidence of negative cross program effects of RCRA regulations on facility compliance with CAA. Increases in RCRA inspections and RCRA penalties as well as the threat of an RCRA inspection result in facilities complying less with CAA regulations. Furthermore, facilities that are regulated under other programs such as Toxic Release Inventory (TRI) and Clean Water Act (CWA) show less compliance than other facilities. Positive withinprogram effects are found, with the threat of a CAA inspection and actual CAA penalty imposing positive effects on CAA compliance. In addition, unemployment rates are negatively related to compliance while population density is positively related to compliance.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.shsu.edu/%7Etcq001/paper_files/wp12-07_paper.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Sam Houston State University, Department of Economics and International Business in its series Working Papers with number 1207.

    as in new window
    Length:
    Date of creation: Sep 2012
    Date of revision:
    Handle: RePEc:shs:wpaper:1207

    Contact details of provider:
    Postal: P O Box 2118, Huntsville, TX 77341-2118
    Fax: 936-294-3612
    Web page: http://www.shsu.edu/~eco_www/
    More information through EDIRC

    Related research

    Keywords:

    References

    References listed on IDEAS
    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.:
    as in new window
    1. Wayne B. Gray & Jay P. Shimshack, 2011. "The Effectiveness of Environmental Monitoring and Enforcement: A Review of the Empirical Evidence," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 5(1), pages 3-24, Winter.
    2. Wayne B. Gray & Ronald J. Shadbegian, 2007. "The Environmental Performance Of Polluting Plants: A Spatial Analysis," Journal of Regional Science, Wiley Blackwell, vol. 47(1), pages 63-84.
    3. Gamper-Rabindran, Shanti, 2006. "Did the EPA's voluntary industrial toxics program reduce emissions? A GIS analysis of distributional impacts and by-media analysis of substitution," Journal of Environmental Economics and Management, Elsevier, vol. 52(1), pages 391-410, July.
    4. Harford, Jon D., 1991. "Measurement error and state-dependent pollution control enforcement," Journal of Environmental Economics and Management, Elsevier, vol. 21(1), pages 67-81, July.
    5. Dietrich Earnhart, 2004. "The Effects of Community Characteristics on Polluter Compliance Levels," Land Economics, University of Wisconsin Press, vol. 80(3), pages 408-432.
    6. Laplante, Benoit & Rilstone, Paul, 1996. "Environmental Inspections and Emissions of the Pulp and Paper Industry in Quebec," Journal of Environmental Economics and Management, Elsevier, vol. 31(1), pages 19-36, July.
    7. Louis Kaplow & Steven Shavell, 1994. "Optimal Law Enforcement with Self-Reporting of Behavior," NBER Working Papers 3822, National Bureau of Economic Research, Inc.
    8. Shimshack, Jay P. & Ward, Michael B., 2005. "Regulator reputation, enforcement, and environmental compliance," MPRA Paper 25994, University Library of Munich, Germany.
    9. Dietrich Earnhart, 2004. "Panel Data Analysis of Regulatory Factors Shaping Environmental Performance," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 391-401, February.
    10. Hilary Sigman, 1996. "Cross-Media Pollution: Responses to Restrictions on Chlorinated Solvent Releases," Land Economics, University of Wisconsin Press, vol. 72(3), pages 298-312.
    11. Decker, Christopher S. & Pope, Christopher R., 2005. "Adherence to environmental law: the strategic complementarities of compliance decisions," The Quarterly Review of Economics and Finance, Elsevier, vol. 45(4-5), pages 641-661, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:shs:wpaper:1207. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Troy Quast).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.