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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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    More about this item

    Keywords

    Environmental regulation; Monitoring and enforcement; EPA; Natural field experiment; Random assignment;
    All these keywords.

    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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