Environmental Regulations and Social Norms
The evidence suggests that a surprisingly large number of firms comply with pollution standards even though expected penalties for non-compliance are quite low. This paper establishes an environmental social norm model that embodies collective environmental actions among firms. It provides a plausible explanation for these puzzling empirical findings. In this social norm framework, we also explore how the extrinsic pricing incentive affects the intrinsic environmental morale among firms. By taking into account the crowding-out effect of pricing incentives, we show that pollution taxes may not be an effective tool in fighting pollution. Copyright 2003 by Kluwer Academic Publishers
When requesting a correction, please mention this item's handle: RePEc:kap:itaxpf:v:10:y:2003:i:1:p:63-75. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.