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How To Comply With Environmental Regulations? The Role Of Information




The effectiveness of environmental regulation can be viewed as conditioned by the action of two main agents: regulated firms and public agency. Using a questionnaire on the pulp and paper industry in Portugal, this article finds that firms' decision to comply with environmental regulations is strongly influenced by firms' information on its legal obligations; this effect is stronger for smaller firms. Moreover larger/younger firms are less likely to comply with environmental regulations than smaller/older firms. Regarding the public agency's behavior, the authors find that greater monitoring efforts are directed toward larger/younger firms and toward those firms most likely to cause higher pollution levels. (JEL "K32, Q28") Copyright 2005 Western Economic Association International.

Suggested Citation

  • Anabela Botelho & Lígia M. Costa Pinto & Isabel Rodrigues, 2005. "How To Comply With Environmental Regulations? The Role Of Information," Contemporary Economic Policy, Western Economic Association International, vol. 23(4), pages 568-577, October.
  • Handle: RePEc:bla:coecpo:v:23:y:2005:i:4:p:568-577

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    References listed on IDEAS

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    Cited by:

    1. Botelho, Anabela & Pinto, Ligia Costa, 2004. "Students' expectations of the economic returns to college education: results of a controlled experiment," Economics of Education Review, Elsevier, vol. 23(6), pages 645-653, December.
    2. Pinto, Ligia M. & Harrison, Glenn W., 2003. "Multilateral negotiations over climate change policy," Journal of Policy Modeling, Elsevier, vol. 25(9), pages 911-930, December.
    3. repec:spr:portec:v:1:y:2002:i:1:d:10.1007_s10258-001-0003-7 is not listed on IDEAS
    4. Anabela Botelho & Lígia Costa Pinto & Miguel Portela & Antonio Silva, 2001. "The determinants of success in university entrance," NIMA Working Papers 13, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho.
    5. Ana Rute Cardoso & Priscila Ferreira, 2009. "The dynamics of job creation and destruction for university graduates: why a rising unemployment rate can be misleading," Applied Economics, Taylor & Francis Journals, vol. 41(19), pages 2513-2521.
    6. Anabela Botelho & Ligia Costa Pinto, 2002. "Hypothetical, real, and predicted real willingness to pay in open-ended surveys: experimental results," Applied Economics Letters, Taylor & Francis Journals, vol. 9(15), pages 993-996.
    7. Anabela Botelho, 2001. "Strategic behavior at trial-The production, reporting, and evaluation of complex evidence," NIMA Working Papers 14, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho.
    8. Aslan Zorlu & Joop Hartog, 2005. "The effect of immigration on wages in three european countries," Journal of Population Economics, Springer;European Society for Population Economics, vol. 18(1), pages 113-151, December.
    9. Joao Cerejeira da Silva, 2002. "Identification of the Portuguese industrial districts," NIMA Working Papers 17, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho.
    10. Anabela Botelho, 2012. "An empirical analysis of the factors influencing compliance with healthcare waste management regulations," NIMA Working Papers 46, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho.
    11. Anabela Botelho, 2013. "The impact of regulatory compliance behavior on hazardous waste generation in European private healthcare facilities," NIMA Working Papers 49, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho.
    12. Elvira Lima & David K. Whynes, 2003. "Finance and performance of Portuguese hospitals," NIMA Working Papers 20, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho.
    13. Pedro Portugal & Ana Rute Cardoso, 2001. "Disentangling the minimum wage puzzle: an analysis of job accessions and separations from a longitudinal matched employer- employee data set," NIMA Working Papers 9, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho.
    14. Tauhidur Rahman & Mini Kohli & Sharon Megdal & Satheesh Aradhyula & Jackie Moxley, 2010. "Determinants Of Environmental Noncompliance By Public Water Systems," Contemporary Economic Policy, Western Economic Association International, vol. 28(2), pages 264-274, April.
    15. Anabela Botelho, 2011. "Achieving compliance with healthcare waste management regulations: empirical evidence from small European healthcare units," NIMA Working Papers 42, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho.
    16. Paulo Guimarães, 2002. "The state of Portuguese research in economics: an analysis based on publications in international journals," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 1(1), pages 3-25, March.
    17. Elvira Lima & Teresa J. Esquerdo, 2003. "The economic costs of alcohol misuse in Portugal," NIMA Working Papers 24, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho.

    More about this item

    JEL classification:

    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy


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