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Non-uniform implementation of uniform standards

Author

Listed:
  • Carmen Arguedas

    (Universidad Autónoma de Madrid)

  • Dietrich Earnhart

    (University of Kansas)

  • Sandra Rousseau

    (KU Leuven)

Abstract

Regulations are frequently based on a uniform standard, which applies to all facilities within a single industry. However, implementation of many of these regulations does not lead to uniform limits due to considerations of local conditions in real policy settings. In this paper, we theoretically examine the relationships among the stringency of effluent limits imposed on individual polluting facilities by permit writers, environmental protection agencies’ monitoring decisions, and the ambient quality of the local environment. In particular, we explore the establishment of effluent limits when (1) the national emission standard represents only an upper bound on the local issuance of limits and (2) negotiation efforts expended by regulated polluting facilities and environmentally concerned citizens play a role. We find that the negotiated discharge limit depends on the political weight enjoyed and the negotiation effort costs faced by both citizens and the regulated facility, along with the stringency of the national standard and local ambient quality conditions.

Suggested Citation

  • Carmen Arguedas & Dietrich Earnhart & Sandra Rousseau, 2017. "Non-uniform implementation of uniform standards," Journal of Regulatory Economics, Springer, vol. 51(2), pages 159-183, April.
  • Handle: RePEc:kap:regeco:v:51:y:2017:i:2:d:10.1007_s11149-017-9321-2
    DOI: 10.1007/s11149-017-9321-2
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    References listed on IDEAS

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    Cited by:

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    2. Herzing, Mathias, 2021. "Multiple equilibria in the context of inspection probabilities depending on firms’ relative emissions," Resource and Energy Economics, Elsevier, vol. 63(C).
    3. Arguedas, Carmen & Cabo, Francisco & Martín-Herrán, Guiomar, 2020. "Enforcing regulatory standards in stock pollution problems," Journal of Environmental Economics and Management, Elsevier, vol. 100(C).

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    More about this item

    Keywords

    Effluent limits; Monitoring; Inspections; Environmental permits; Wastewater; Compliance;
    All these keywords.

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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