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How To Comply With Environmental Regulations? The Role Of Information

  • ANABELA BOTELHO
  • LÍGIA M. COSTA PINTO
  • ISABEL RODRIGUES

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.

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Article provided by Western Economic Association International in its journal Contemporary Economic Policy.

Volume (Year): 23 (2005)
Issue (Month): 4 (October)
Pages: 568-577

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Handle: RePEc:bla:coecpo:v:23:y:2005:i:4:p:568-577
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