IDEAS home Printed from https://ideas.repec.org/a/bla/coecpo/v14y1996i1p107-115.html
   My bibliography  Save this article

Cercla And Deep Pockets: Market Response To The Superfund Program

Author

Listed:
  • RICHARD K. HARPER
  • STEPHEN C. ADAMS

Abstract

This paper uses event study methods to estimate wealth effects upon shareholders who are named by the U.S. Environmental Protection Agency (EPA) as potentially responsible parties at a Superfund site. Impacts appear to be divided into three periods: an initial program period where stock market effects depend largely on prior visibility of the site, a second period where likely financial impact is more important, and a third period where notification has little association with either visibility or financial measures. However, the expected remediation cost burden is not borne evenly. “Deep‐pocket” firms appear to be disproportionately penalized by the market during the second period.

Suggested Citation

  • Richard K. Harper & Stephen C. Adams, 1996. "Cercla And Deep Pockets: Market Response To The Superfund Program," Contemporary Economic Policy, Western Economic Association International, vol. 14(1), pages 107-115, January.
    • Handle: RePEc:bla:coecpo:v:14:y:1996:i:1:p:107-115
    DOI: 10.1111/j.1465-7287.1996.tb00607.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1465-7287.1996.tb00607.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1465-7287.1996.tb00607.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Tom H. Tietenberg, 1989. "Indivisible Toxic Torts: The Economics of Joint and Several Liability," Land Economics, University of Wisconsin Press, vol. 65(4), pages 305-319.
    2. Bruce Yandle, 1989. "Taxation, Political Action, and Superfund," Cato Journal, Cato Journal, Cato Institute, vol. 8(3), pages 751-764, Winter.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:dau:papers:123456789/3187 is not listed on IDEAS
    2. 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, July.
    3. Anna Alberini & Shelby Frost, 2007. "Forcing Firms to Think About the Future: Economic Incentives and the Fate of Hazardous Waste," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 36(4), pages 451-474, April.
    4. Rajesh Kumar Bhaskaran & Irene Wei Kiong Ting & Sujit K. Sukumaran & Saraswathy Divakaran Sumod, 2020. "Environmental, social and governance initiatives and wealth creation for firms: An empirical examination," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(5), pages 710-729, July.
    5. Karpoff, Jonathan M & Lott, John R, Jr & Wehrly, Eric W, 2005. "The Reputational Penalties for Environmental Violations: Empirical Evidence," Journal of Law and Economics, University of Chicago Press, vol. 48(2), pages 653-675, October.
    6. Garber, Steven & Hammitt, James K., 1998. "Risk Premiums for Environmental Liability: Does Superfund Increase the Cost of Capital?," Journal of Environmental Economics and Management, Elsevier, vol. 36(3), pages 267-294, November.
    7. Muehlenbachs, Lucija & Newcomb Sinha, Elisabeth & Ranjan Sinha, Nitish, 2011. "Strategic Release of News at the EPA," RFF Working Paper Series dp-11-45, Resources for the Future.
    8. Carpentier, Cécile & Suret, Jean-Marc, 2015. "Stock market and deterrence effect: A mid-run analysis of major environmental and non-environmental accidents," Journal of Environmental Economics and Management, Elsevier, vol. 71(C), pages 1-18.
    9. Alberini, Anna & Austin, David, 1999. "On and Off the Liability Bandwagon: Explaining State Adoptions of Strict Liability in Hazardous Waste Programs," Journal of Regulatory Economics, Springer, vol. 15(1), pages 41-63, January.
    10. Christopher Knittel & Shulamit Kahn, 2002. "The Impact of the Clean Air Act Amendments of 1990 on Electric Utilitiesand Coal Mines: Evidence from the Stock Market," Working Papers 528, University of California, Davis, Department of Economics.
    11. Capelle-Blancard, Gunther & Laguna, Marie-Aude, 2010. "How does the stock market respond to chemical disasters?," Journal of Environmental Economics and Management, Elsevier, vol. 59(2), pages 192-205, March.
    12. Anna Alberini & Kathleen Segerson, 2002. "Assessing Voluntary Programs to Improve Environmental Quality," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 22(1), pages 157-184, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gary M. Woller & Kerk Phillips, 1996. "Commercial Banks And Ldc Debt Reduction," Contemporary Economic Policy, Western Economic Association International, vol. 14(2), pages 107-123, April.
    2. Jain, Satish K. & Kundu, Rajendra P., 2006. "Characterization of efficient simple liability rules with multiple tortfeasors," International Review of Law and Economics, Elsevier, vol. 26(3), pages 410-427, September.
    3. Alberini, Anna & Austin, David, 1999. "On and Off the Liability Bandwagon: Explaining State Adoptions of Strict Liability in Hazardous Waste Programs," Journal of Regulatory Economics, Springer, vol. 15(1), pages 41-63, January.
    4. Anna Alberini & David Austin, 2002. "Accidents Waiting to Happen: Liability Policy and Toxic Pollution Releases," The Review of Economics and Statistics, MIT Press, vol. 84(4), pages 729-741, November.
    5. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
    6. 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, July.
    7. Chang, Howard F. & Sigman, Hilary, 2007. "The effect of joint and several liability under superfund on brownfields," International Review of Law and Economics, Elsevier, vol. 27(4), pages 363-384, December.
    8. Eric Langlais & Maxime Charreire, 2020. "Should environment be a concern for competition policy when firms face environmental liability ?," EconomiX Working Papers 2020-25, University of Paris Nanterre, EconomiX.
    9. Alberini, Anna & Austin, David H., 1999. "Strict Liability as a Deterrent in Toxic Waste Management: Empirical Evidence from Accident and Spill Data," Journal of Environmental Economics and Management, Elsevier, vol. 38(1), pages 20-48, July.
    10. Young Robert & Faure Michael & Fenn Paul, 2007. "Multiple Tortfeasors: An Economic Analysis," Review of Law & Economics, De Gruyter, vol. 3(1), pages 111-132, May.
    11. Andrew B. Whitford, 2007. "Competing Explanations for Bureaucratic Preferences," Journal of Theoretical Politics, , vol. 19(3), pages 219-247, July.
    12. Hilary Sigman & Sarah Stafford, 2011. "Management of Hazardous Waste and Contaminated Land," Annual Review of Resource Economics, Annual Reviews, vol. 3(1), pages 255-275, October.
    13. Peter S. Menell, 1991. "The Limitations of Legal Institutions for Addressing Environmental Risks," Journal of Economic Perspectives, American Economic Association, vol. 5(3), pages 93-113, Summer.
    14. McChesney Fred S., 1998. "Devaluing Deregulation," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 8(4), pages 1-22, December.
    15. Endres, Alfred & Friehe, Tim, 2011. "Incentives to diffuse advanced abatement technology under environmental liability law," Journal of Environmental Economics and Management, Elsevier, vol. 62(1), pages 30-40, July.
    16. Jiunn-Rong Chiou & Jin-Li Hu, 2001. "Environmental Research Joint Ventures under Emission Taxes," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 20(2), pages 129-146, October.
    17. Hilary Sigman, 2010. "Environmental Liability and Redevelopment of Old Industrial Land," Journal of Law and Economics, University of Chicago Press, vol. 53(2), pages 289-306, May.
    18. Howard F. Chang & Hilary Sigman, 2014. "An Empirical Analysis of Cost Recovery in Superfund Cases: Implications for Brownfields and Joint and Several Liability," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 11(3), pages 477-504, September.
    19. Satish K. Jain, 2009. "Efficiency Of Liability Rules With Multiple Victims," Pacific Economic Review, Wiley Blackwell, vol. 14(1), pages 119-134, February.
    20. Sigman, Hilary, 1998. "Liability Funding and Superfund Clean-Up Remedies," Journal of Environmental Economics and Management, Elsevier, vol. 35(3), pages 205-224, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:coecpo:v:14:y:1996:i:1:p:107-115. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/weaaaea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.