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Monitoring and enforcement of environmental regulations

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  • Telle, Kjetil

Abstract

Relying on a small natural field experiment conducted by the Norwegian Environmental Protection Agency, I estimate effects of three fundamental elements of most monitoring and enforcement practices: self-reporting, audit frequency and specific deterrence. I find evidence of under-reporting of violations in firms' self-audits, as more violations are detected in on-site audits than in self-audits. Announcing the increased audit frequency has no effect on firms' compliance, but an audit raises subsequent compliance substantially.

Suggested Citation

  • Telle, Kjetil, 2013. "Monitoring and enforcement of environmental regulations," Journal of Public Economics, Elsevier, vol. 99(C), pages 24-34.
  • Handle: RePEc:eee:pubeco:v:99:y:2013:i:c:p:24-34
    DOI: 10.1016/j.jpubeco.2013.01.001
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Joschka Gerigk & Ian MacKenzie & Markus Ohndorf, 2015. "A Model of Benchmarking Regulation: Revisiting the Efficiency of Environmental Standards," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(1), pages 59-82, September.
    2. Peters, Jörg & Langbein, Jörg & Roberts, Gareth, 2016. "Policy evaluation, randomized controlled trials, and external validity—A systematic review," Economics Letters, Elsevier, vol. 147(C), pages 51-54.
    3. Dragan Ilic & Janick Christian Mollet, 2016. "Voluntary Corporate Climate Initiatives and Regulatory Loom: Batten Down the Hatches," CER-ETH Economics working paper series 16/261, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    4. Synøve N. Andersen & Kjetil Telle, 2016. "Electronic monitoring and recidivism. Quasi-experimental evidence from Norway," Discussion Papers 844, Statistics Norway, Research Department.
    5. Robert Dur & Ben Vollaard, 2013. "Salience of Law Enforcement: A Field Experiment," Tinbergen Institute Discussion Papers 17-007/VII, Tinbergen Institute.
    6. Vollaard, Ben, 2017. "Temporal displacement of environmental crime: Evidence from marine oil pollution," Journal of Environmental Economics and Management, Elsevier, vol. 82(C), pages 168-180.
    7. Lirong Liu & Zhou Yang, 2014. "High Priority Violation Policy and Targeting Enforcement: An Empirical Analysis of its Effectiveness and Efficiency," Working Papers 1411, Sam Houston State University, Department of Economics and International Business.
    8. Huizingh, Eelko & Mulder, Machiel, 2014. "Effectiveness of regulatory interventions on firm behavior," Research Report 14011-EEF, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    9. Nyborg, Karine & Telle, Kjetil, 2004. "The role of warnings in regulation: keeping control with less punishment," Journal of Public Economics, Elsevier, vol. 88(12), pages 2801-2816, December.
    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. Andreas Oestreich, 2015. "Firms’ Emissions and Self-Reporting Under Competitive Audit Mechanisms," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(4), pages 949-978, December.
    12. Ilić, Dragan & Mollet, Janick Christian, 2015. "Voluntary Corporate Climate Initiatives and Regulatory Loom: Batten Down the Hatches," Working papers 2015/06, Faculty of Business and Economics - University of Basel.
    13. Lirong Liu, 2013. "Analysis of Firm Compliance with Multiple Environmental regulations," Economics Bulletin, AccessEcon, vol. 33(3), pages 1695-1705.

    More about this item

    Keywords

    Environmental regulation; Monitoring and enforcement; EPA; Natural field experiment; Random assignment;

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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