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The Enforcement Of Pollution Control Laws: Inspections, Violations, And Self-Reporting

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  • Eric Helland

Abstract

Targeting is the practice of inspecting firms most likely to violate a regulation. This paper provides empirical evidence on the role of targeting in regulatory compliance. I propose that self-reporting by a firm is used to demonstrate that firms are willing to cooperate. The results indicate that there is a one-quarter penalty period following a violation. Inspections are also determined by the economic situation of the surrounding community, demonstrating that targeting opens the door to interestgroup influence. Inspections that detect violations encourage selfreporting, showing that firms demonstrate their desire to cooperate with regulators by disclosing violations. © 1998 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology

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  • Eric Helland, 1998. "The Enforcement Of Pollution Control Laws: Inspections, Violations, And Self-Reporting," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 141-153, February.
  • Handle: RePEc:tpr:restat:v:80:y:1998:i:1:p:141-153
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    1. Gray, Wayne B. & Deily, Mary E., 1996. "Compliance and Enforcement: Air Pollution Regulation in the U.S. Steel Industry," Journal of Environmental Economics and Management, Elsevier, vol. 31(1), pages 96-111, July.
    2. W. Kip Viscusi, 1979. "The Impact of Occupational Safety and Health Regulation," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 117-140, Spring.
    3. Laplante, Benoit & Rilstone, Paul, 1996. "Environmental Inspections and Emissions of the Pulp and Paper Industry in Quebec," Journal of Environmental Economics and Management, Elsevier, vol. 31(1), pages 19-36, July.
    4. repec:cup:apsrev:v:85:y:1991:i:01:p:115-136_17 is not listed on IDEAS
    5. Deily, Mary E. & Gray, Wayne B., 1991. "Enforcement of pollution regulations in a declining industry," Journal of Environmental Economics and Management, Elsevier, pages 260-274.
    6. Harrington, Winston, 1988. "Enforcement leverage when penalties are restricted," Journal of Public Economics, Elsevier, pages 29-53.
    7. Peltzman, Sam, 1976. "Toward a More General Theory of Regulation," Journal of Law and Economics, University of Chicago Press, vol. 19(2), pages 211-240, August.
    8. Feinstein, Jonathan S, 1990. "Detection Controlled Estimation," Journal of Law and Economics, University of Chicago Press, vol. 33(1), pages 233-276, April.
    9. Feinstein, Jonathan S, 1989. "The Safety Regulation of U.S. Nuclear Power Plants: Violations, Inspections, and Abnormal Occurrences," Journal of Political Economy, University of Chicago Press, vol. 97(1), pages 115-154, February.
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