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How and Why Do Economic Operators Comply With EU Law? Analysis of Firm‐Level Responses to the EU Timber Regulation in Germany

Author

Listed:
  • Margret Köthke
  • Metodi Sotirov

Abstract

The European Union (EU) Timber Regulation (EUTR) formally requires EU operators to conduct due diligence along their supply chains to prevent illegally sourced timber products from entering the European market. Little is known about the regulatory behaviour and motivations of operators to comply with this regulation. We explore the regulatory behaviour of companies by applying a synthesis of behavioural theories of regulatory compliance and transnational market regulation. Informed by qualitative and quantitative mixed methods, this study finds that EUTR compliance is influenced by operators' regulative, economic, normative and cultural‐cognitive motivations. The empirical analyses reveal that larger, publicly exposed companies are driven to comply through social pressure and the deterrence effect of sanctions and control. Operators' perceptions of the costs and benefits do not explain compliance behaviour in a significant, quantitative way. The Internal values to abide by the law are found to be a stronger motivator than economic cost–benefit calculations.

Suggested Citation

  • Margret Köthke & Metodi Sotirov, 2024. "How and Why Do Economic Operators Comply With EU Law? Analysis of Firm‐Level Responses to the EU Timber Regulation in Germany," Journal of Common Market Studies, Wiley Blackwell, vol. 62(6), pages 1594-1614, November.
    • Handle: RePEc:bla:jcmkts:v:62:y:2024:i:6:p:1594-1614
    DOI: 10.1111/jcms.13585
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    References listed on IDEAS

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    1. Dieguez, Laura & Sotirov, Metodi, 2021. "FSC sustainability certification as green-lane for legality verification under the EUTR? Changes and policy learning at the interplay of private governance and public policy," Forest Policy and Economics, Elsevier, vol. 131(C).
    2. repec:bla:jcmkts:v:46:y:2008:i::p:293-313 is not listed on IDEAS
    3. Burkard Eberlein & Kenneth W. Abbott & Julia Black & Errol Meidinger & Stepan Wood, 2014. "Transnational business governance interactions: Conceptualization and framework for analysis," Regulation & Governance, John Wiley & Sons, vol. 8(1), pages 1-21, March.
    4. Carlos Mendez & John Bachtler, 2017. "Financial Compliance in the European Union: A Cross-National Assessment of Financial Correction Patterns and Causes in Cohesion Policy," Journal of Common Market Studies, Wiley Blackwell, vol. 55(3), pages 569-592, May.
    5. McDermott, Constance L. & Sotirov, Metodi, 2018. "A political economy of the European Union's timber regulation: Which member states would, should or could support and implement EU rules on the import of illegal wood?," Forest Policy and Economics, Elsevier, vol. 90(C), pages 180-190.
    6. Jonathan Zeitlin & Christine Overdevest, 2021. "Experimentalist interactions: Joining up the transnational timber legality regime," Regulation & Governance, John Wiley & Sons, vol. 15(3), pages 686-708, July.
    7. Brigitte Pircher & Karl Loxbo, 2020. "Compliance with EU Law in Times of Disintegration: Exploring Changes in Transposition and Enforcement in the EU Member States between 1997 and 2016," Journal of Common Market Studies, Wiley Blackwell, vol. 58(5), pages 1270-1287, September.
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    Cited by:

    1. Tiancheng Chi & Zheng Yang, 2024. "Trends in Corporate Environmental Compliance Research: A Bibliometric Analysis (2004–2024)," Sustainability, MDPI, vol. 16(13), pages 1-28, June.
    2. McDermott, Constance L. & Addoah, Thomas & Agyarko-Kwarteng, Tawiah & Asare, Rebecca & Assanvo, Alex & Lima, Mairon Bastos & Bellfield, Helen & Berlan, Amanda & Carodenuto, Sophia & Gardner, Toby & Ga, 2025. "Equity in unilateral value chain policies: A monitoring framework for the EUDR and beyond," Forest Policy and Economics, Elsevier, vol. 174(C).

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