The Industrial Organization of Regulatory Capture

Objective This study evaluates the role that the economic organization of an industry plays in its ability to successfully pressure government regulators for laxer enforcement Methods The effect of the industrial organization of the coal mining industry on environmental regulation is assessed using pooled cross‐sectional time‐series analyses of Surface Mining Control and Reclamation Act enforcement actions in the American states Results The findings indicate that as the coal industry becomes more concentrated in a few firms, more geographically concentrated within a state, and more dominated by multistate firms, states enforce environmental regulations less stringently Conclusion An industry's capacity to exert influence on its regulators may be significantly shaped by important aspects of its economic structure.