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Effect Of Cooperative Enforcement Strategies On Wastewater Management

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  • Zach Raff
  • Dietrich Earnhart

Abstract

This paper examines the influence of the environmental enforcement approach on the effects of government interventions on corporate environmental management. The paper contrasts a potentially innovative cooperative approach with the standard coercive approach. Empirical results show that the effectiveness of enforcement at inducing better environmental management depends on the overall regulatory enforcement approach. For example, greater cooperation undermines the effectiveness of more severe enforcement forms. Specifically, as the environmental enforcement approach becomes more cooperative, the effectiveness of federal inspections and monetary penalties decreases. These results generally demonstrate that a cooperative enforcement approach proves less effective than a coercive approach. (JEL D22, K32, Q52, Q58)

Suggested Citation

  • Zach Raff & Dietrich Earnhart, 2018. "Effect Of Cooperative Enforcement Strategies On Wastewater Management," Economic Inquiry, Western Economic Association International, vol. 56(2), pages 1357-1379, April.
  • Handle: RePEc:bla:ecinqu:v:56:y:2018:i:2:p:1357-1379
    DOI: 10.1111/ecin.12549
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    Cited by:

    1. Walter, Jason & Raff, Zach, 2019. "When the regulator goes home: The effectiveness of environmental oversight," MPRA Paper 94158, University Library of Munich, Germany.
    2. Michela Limardi & Francesca Battista, 2022. "Global Supply Chain Sustainability: the Role of Non-governmental Enforcement Mechanisms," Documents de travail du Centre d'Economie de la Sorbonne 22013, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    3. Michela Limardi & Francesca Battista, 2022. "Global Supply Chain Sustainability: the Role of Non-governmental Enforcement Mechanisms," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-03704334, HAL.
    4. Zach Raff & Jason M. Walter, 2020. "Regulatory Avoidance and Spillover: The Effects of Environmental Regulation on Emissions at Coal-Fired Power Plants," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(3), pages 387-420, March.
    5. Michela Limardi & Francesca Battista, 2022. "Global Supply Chain Sustainability: the Role of Non-governmental Enforcement Mechanisms," Post-Print halshs-03704334, HAL.
    6. Zach Raff & Dietrich Earnhart, 2020. "The effect of environmental enforcement on labor: environmental workers and production workers," Journal of Regulatory Economics, Springer, vol. 57(2), pages 118-133, April.

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    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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