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How To Comply With Environmental Regulations? The Role Of Information

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

Abstract

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)

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
    DOI: 10.1093/cep/byi045
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. 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.
    3. Rousseau, Sandra, 2009. "Empirical Analysis of Sanctions for Environmental Offenses," International Review of Environmental and Resource Economics, now publishers, vol. 3(3), pages 161-194, December.

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    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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