IDEAS home Printed from https://ideas.repec.org/a/kap/itaxpf/v10y2003i1p63-75.html
   My bibliography  Save this article

Environmental Regulations and Social Norms

Author

Listed:
  • Lai, Ching-Chong
  • Yang, Chih-Yu
  • Chang, Juin-Jen

Abstract

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

Suggested Citation

  • Lai, Ching-Chong & Yang, Chih-Yu & Chang, Juin-Jen, 2003. "Environmental Regulations and Social Norms," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 10(1), pages 63-75, January.
    • Handle: RePEc:kap:itaxpf:v:10:y:2003:i:1:p:63-75
    as

    Download full text from publisher

    File URL: http://journals.kluweronline.com/issn/0927-5940/contents
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

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

    Citations

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


    Cited by:

    1. Herzing, Mathias, 2021. "Multiple equilibria in the context of inspection probabilities depending on firms’ relative emissions," Resource and Energy Economics, Elsevier, vol. 63(C).
    2. Villegas, Clara & Coria, Jessica, 2009. "Taxes, Permits and the Adoption of Abatement Technology under Imperfect Compliance," Working Papers in Economics 368, University of Gothenburg, Department of Economics.
    3. Gang Cui & Zhicheng Liu, 2022. "The Impact of Environmental Regulations and Social Norms on Farmers’ Chemical Fertilizer Reduction Behaviors: An Investigation of Citrus Farmers in Southern China," Sustainability, MDPI, vol. 14(13), pages 1-19, July.
    4. Nyborg, Karine & Telle, Kjetil, 2004. "A dissolving paradox: Firms’ compliance to environmental regulation," Memorandum 02/2004, Oslo University, Department of Economics.
    5. Rousseau, Sandra, 2009. "Empirical Analysis of Sanctions for Environmental Offenses," International Review of Environmental and Resource Economics, now publishers, vol. 3(3), pages 161-194, December.
    6. Deffains Bruno & Demougin Dominique, 2011. "Class Actions, Compliance and Moral Cost," Review of Law & Economics, De Gruyter, vol. 7(2), pages 481-500, December.
    7. Häckner, Jonas & Herzing, Mathias, 2020. "The equilibrium compliance rate among regulated firms," International Review of Law and Economics, Elsevier, vol. 63(C).
    8. Garcia, Jorge H. & Wei, Jiegen, 2021. "On social norms and beliefs: A model of manager environmental behavior," Resource and Energy Economics, Elsevier, vol. 65(C).
    9. Nyborg, Karine & Howarth, Richard B. & Brekke, Kjell Arne, 2006. "Green consumers and public policy: On socially contingent moral motivation," Resource and Energy Economics, Elsevier, vol. 28(4), pages 351-366, November.
    10. Goerke Laszlo & Pannenberg Markus, 2004. "Norm-Based Trade Union Membership: Evidence for Germany," German Economic Review, De Gruyter, vol. 5(4), pages 481-504, December.
    11. Michael Rauscher, 2006. "Voluntary Emission Reductions, Social Rewards, and Environmental Policy," CESifo Working Paper Series 1838, CESifo.
    12. Tor Helge Holmås & Egil Kjerstad & Hilde Lurås & Odd Rune Straume, 2008. "Does monetary punishment crowd out pro-social motivation? The case of hospital bed-blocking," NIPE Working Papers 17/2008, NIPE - Universidade do Minho.
    13. van Wagenberg, Coen & Oosterkamp, Elsje & van Asseldonk, Marcel & Baltussen, Willy, 2015. "Cost-benefit analysis of private certification schemes for animal welfare during long-distance transport in the European Union," 148th Seminar, November 30-December 1, 2015, The Hague, The Netherlands 229265, European Association of Agricultural Economists.

    More about this item

    Statistics

    Access and download statistics

    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:kap:itaxpf:v:10:y:2003:i:1:p:63-75. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.