IDEAS home Printed from https://ideas.repec.org/a/eee/irlaec/v42y2015icp135-146.html
   My bibliography  Save this article

Coercive vs. cooperative enforcement: Effect of enforcement approach on environmental management

Author

Listed:
  • Earnhart, Dietrich H.
  • Glicksman, Robert L.

Abstract

A spirited debate explores the comparative merits of two different approaches to the enforcement of regulatory law: the coercive approach, which emphasizes the deterrence of noncompliance through inflexibly imposed sanctions, and the cooperative approach, which emphasizes the inducement of compliance through flexibility and assistance. Both scholarly and policymaking communities are interested in this topic of enforcement approach within the realms of finance, tax compliance, occupational safety, food and drug safety, consumer product safety, and environmental protection. To inform this debate, our study explores enforcement of environmental protection laws where the debate has been especially spirited yet lacking in much empirical evidence. Specifically our study empirically analyzes the effects of these two approaches on environmental management practices linked to compliance with wastewater discharge limits imposed on chemical manufacturing facilities. For this analysis, we view the enforcement approach as representing a relationship between a regulator and a regulated entity that is measured in multiple dimensions so that we are able to explore the extent of cooperation or coercion. The empirical results reveal that a more cooperative relationship induces better environmental management.

Suggested Citation

  • Earnhart, Dietrich H. & Glicksman, Robert L., 2015. "Coercive vs. cooperative enforcement: Effect of enforcement approach on environmental management," International Review of Law and Economics, Elsevier, vol. 42(C), pages 135-146.
    • Handle: RePEc:eee:irlaec:v:42:y:2015:i:c:p:135-146
    DOI: 10.1016/j.irle.2015.02.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0144818815000174
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.irle.2015.02.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54, National Bureau of Economic Research, Inc.
    2. Arimura, Toshi H. & Hibiki, Akira & Katayama, Hajime, 2008. "Is a voluntary approach an effective environmental policy instrument?: A case for environmental management systems," Journal of Environmental Economics and Management, Elsevier, vol. 55(3), pages 281-295, May.
    3. Nakamura, Masao & Takahashi, Takuya & Vertinsky, Ilan, 2001. "Why Japanese Firms Choose to Certify: A Study of Managerial Responses to Environmental Issues," Journal of Environmental Economics and Management, Elsevier, vol. 42(1), pages 23-52, July.
    4. Anton, W.R.Q.Wilma Rose Q. & Deltas, George & Khanna, Madhu, 2004. "Incentives for environmental self-regulation and implications for environmental performance," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 632-654, July.
    5. Magat, Wesley A & Viscusi, W Kip, 1990. "Effectiveness of the EPA's Regulatory Enforcement: The Case of Industrial Effluent Standards," Journal of Law and Economics, University of Chicago Press, vol. 33(2), pages 331-360, October.
    6. Michael W. Toffel & Jodi L. Short, 2011. "Coming Clean and Cleaning Up: Does Voluntary Self-Reporting Indicate Effective Self-Policing?," Journal of Law and Economics, University of Chicago Press, vol. 54(3), pages 609-649.
    7. Mary Evans & Lirong Liu & Sarah Stafford, 2011. "Do environmental audits improve long-term compliance? Evidence from manufacturing facilities in Michigan," Journal of Regulatory Economics, Springer, vol. 40(3), pages 279-302, December.
    8. Kozo Horiuchi & Masao Nakamura, 2001. "Environmental Issues and Japanese Firms," Palgrave Macmillan Books, in: Masao Nakamura (ed.), The Japanese Business and Economic System, chapter 13, pages 364-384, Palgrave Macmillan.
    9. Barla, Philippe, 2007. "ISO 14001 certification and environmental performance in Quebec's pulp and paper industry," Journal of Environmental Economics and Management, Elsevier, vol. 53(3), pages 291-306, May.
    10. Kathryn Harrison, 1995. "Is cooperation the answer? Canadian environmental enforcement in comparative context," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 14(2), pages 221-244.
    11. Khanna Madhu & Widyawati Diah, 2011. "Fostering Regulatory Compliance: The Role of Environmental Self-Auditing and Audit Policies," Review of Law & Economics, De Gruyter, vol. 7(1), pages 125-160, May.
    12. Sarah L. Stafford, 2011. "Do Environmental Audits Improve Long-term Compliance? Evidence from Manufacturing Facilities in Michigan," Working Papers 117, Department of Economics, College of William and Mary.
    13. Karpoff, Jonathan M & Lott, John R, Jr & Wehrly, Eric W, 2005. "The Reputational Penalties for Environmental Violations: Empirical Evidence," Journal of Law and Economics, University of Chicago Press, vol. 48(2), pages 653-675, October.
    14. Eric Helland, 1998. "The Enforcement Of Pollution Control Laws: Inspections, Violations, And Self-Reporting," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 141-153, February.
    15. Arimura, Toshi H. & Darnall, Nicole & Katayama, Hajime, 2011. "Is ISO 14001 a gateway to more advanced voluntary action? The case of green supply chain management," Journal of Environmental Economics and Management, Elsevier, vol. 61(2), pages 170-182, March.
    16. Earnhart, Dietrich & Harrington, Donna Ramirez, 2014. "Effect of audits on the extent of compliance with wastewater discharge limits," Journal of Environmental Economics and Management, Elsevier, vol. 68(2), pages 243-261.
    17. Raymond J. Burby & Robert G. Paterson, 1993. "Improving compliance with state environmental regulations," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 12(4), pages 753-772.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dietrich Earnhart & Paul J. Ferraro, 2021. "The Effect of Peer Comparisons on Polluters: A Randomized Field Experiment among Wastewater Dischargers," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 79(4), pages 627-652, August.
    2. Earnhart, Dietrich & Friesen, Lana, 2017. "The Effects of Regulated Facilities' Perceptions About the Effectiveness of Government Interventions on Environmental Compliance," Ecological Economics, Elsevier, vol. 142(C), pages 282-294.
    3. Siglé, Maarten A. & Goslinga, Sjoerd & Speklé, Roland F. & van der Hel, Lisette E.C.J.M., 2022. "The cooperative approach to corporate tax compliance: An empirical assessment," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 46(C).
    4. Brigitte Pircher, 2023. "Compliance with EU Law from 1989 to 2018: The Commission's Shift from a Normative to a Regulative Approach," Journal of Common Market Studies, Wiley Blackwell, vol. 61(3), pages 763-780, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Earnhart, Dietrich & Harrington, Donna Ramirez, 2014. "Effect of audits on the extent of compliance with wastewater discharge limits," Journal of Environmental Economics and Management, Elsevier, vol. 68(2), pages 243-261.
    2. Earnhart, Dietrich & Friesen, Lana, 2017. "The Effects of Regulated Facilities' Perceptions About the Effectiveness of Government Interventions on Environmental Compliance," Ecological Economics, Elsevier, vol. 142(C), pages 282-294.
    3. 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.
    4. Earnhart Dietrich & Harrington Donna Ramirez & Glicksman Robert, 2021. "The Effects of Enforcement on Corporate Environmental Performance: The Role of Perceived Fairness," Review of Law & Economics, De Gruyter, vol. 17(1), pages 71-118, March.
    5. Earnhart, Dietrich & Mark Leonard, J., 2016. "Environmental audits and signaling: The role of firm organizational structure," Resource and Energy Economics, Elsevier, vol. 44(C), pages 1-22.
    6. 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.
    7. Raff, Zach & Earnhart, Dietrich, 2019. "The effects of Clean Water Act enforcement on environmental employment," Resource and Energy Economics, Elsevier, vol. 57(C), pages 1-17.
    8. Kube, Roland & von Graevenitz, Kathrine & Löschel, Andreas & Massier, Philipp, 2019. "Do voluntary environmental programs reduce emissions? EMAS in the German manufacturing sector," Energy Economics, Elsevier, vol. 84(S1).
    9. Dietrich Earnhart & Lana Friesen, 2021. "Enforcement Federalism: Comparing the Effectiveness of Federal Punishment versus State Punishment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 78(2), pages 227-255, February.
    10. Alm, James & Shimshack, Jay, 2014. "Environmental Enforcement and Compliance: Lessons from Pollution, Safety, and Tax Settings," Foundations and Trends(R) in Microeconomics, now publishers, vol. 10(4), pages 209-274, December.
    11. Arimura, Toshi H. & Darnall, Nicole & Katayama, Hajime, 2011. "Is ISO 14001 a gateway to more advanced voluntary action? The case of green supply chain management," Journal of Environmental Economics and Management, Elsevier, vol. 61(2), pages 170-182, March.
    12. Lana Friesen & Dietrich Earnhart, 2012. "Environmental Management Responses to Punishment: Specific Deterrence and Certainty versus Severity of Punishment," Discussion Papers Series 463, School of Economics, University of Queensland, Australia.
    13. Barla, Philippe, 2007. "ISO 14001 certification and environmental performance in Quebec's pulp and paper industry," Journal of Environmental Economics and Management, Elsevier, vol. 53(3), pages 291-306, May.
    14. Earnhart, Dietrich, 2020. "Stated choices of environmental managers: The role of punishment," International Review of Law and Economics, Elsevier, vol. 63(C).
    15. Dietrich Earnhart, 2013. "Effect of Systems to Manage Environmental Aspects on Environmental Performance," Sustainability, MDPI, vol. 5(6), pages 1-32, June.
    16. Dietrich Earnhart & Lana Friesen, 2013. "Can Punishment Generate Specific Deterrence Without Updating? Analysis of a Stated Choice Scenario," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 56(3), pages 379-397, November.
    17. Earnhart, Dietrich & Segerson, Kathleen, 2012. "The influence of financial status on the effectiveness of environmental enforcement," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 670-684.
    18. Ahsan Habib & Md Borhan Uddin Bhuiyan, 2017. "Determinants of monetary penalties for environmental violations," Business Strategy and the Environment, Wiley Blackwell, vol. 26(6), pages 754-775, September.
    19. Júlia Gallego Ziero Uhr & André Luis Squarize Chagas, Daniel de Abreu Pereira Uhr, Renan Porn Peres, 2017. "A study on environmental infractions for Brazilian municipalities: a spatial dynamic panel approach," Working Papers, Department of Economics 2017_13, University of São Paulo (FEA-USP).
    20. Demirel, Pelin & Kesidou, Effie, 2011. "Stimulating different types of eco-innovation in the UK: Government policies and firm motivations," Ecological Economics, Elsevier, vol. 70(8), pages 1546-1557, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:irlaec:v:42:y:2015:i:c:p:135-146. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/irle .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.