Targeting enforcement to improve compliance with environmental regulations
By targeting enforcement efforts on specific segments of the regulated community, greater compliance with environmental regulations can be achieved. In this paper, the inspection minimizing targeting scheme with two groups is derived. Firms are moved at random into the target group, while escape from the target group occurs only when an inspection reveals the firm is in compliance. The optimal targeting scheme reduces inspection costs compared with the strategy suggested by Harrington (1988), where firms are moved into the target group on the basis of compliance record. However, the range of parameter values for which the optimal solution is feasible is limited.
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- Harrington, Winston, 1988. "Enforcement leverage when penalties are restricted," Journal of Public Economics, Elsevier, vol. 37(1), pages 29-53, October.
- Harford, Jon D., 1991. "Measurement error and state-dependent pollution control enforcement," Journal of Environmental Economics and Management, Elsevier, vol. 21(1), pages 67-81, July.
- Harford, Jon D. & Harrington, Winston, 1991. "A reconsideration of enforcement leverage when penalties are restricted," Journal of Public Economics, Elsevier, vol. 45(3), pages 391-395, August.
- Devon Garvie & Andrew Keeler, 1993.
"Incomplete Enforcement with Endogenous Regulatory Choice,"
873, Queen's University, Department of Economics.
- Garvie, Devon & Keeler, Andrew, 1994. "Incomplete enforcement with endogenous regulatory choice," Journal of Public Economics, Elsevier, vol. 55(1), pages 141-162, September.
- Mitchell Polinsky, A. & Rubinfeld, Daniel L., 1991.
"A model of optimal fines for repeat offenders,"
Journal of Public Economics,
Elsevier, vol. 46(3), pages 291-306, December.
- Livernois, John & McKenna, C. J., 1999. "Truth or consequences: Enforcing pollution standards with self-reporting," Journal of Public Economics, Elsevier, vol. 71(3), pages 415-440, March.
- Raymond, Mark, 1999. "Enforcement leverage when penalties are restricted: a reconsideration under asymmetric information," Journal of Public Economics, Elsevier, vol. 73(2), pages 289-295, August.
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