Does Ambient Water Quality Affect the Stringency of Regulations? Plant-Level Evidence of the Clean Water Act
This paper provides evidence that the Clean Water Act implemented through effluent limits responded to local water quality. We choose biological oxygen demand as the pollutant and dissolved oxygen as a water quality indicator. We use a panel of permits for 100 plants in Maryland, Virginia, and Pennsylvania for 1990 to 2004. We estimate that decline in water quality by 1 mg/L lowers permits by 5 mg/L. This finding demonstrates greater flexibility than might be expected in an effluent standards–based approach. It suggests efficient resource use, with permits relaxed with water quality improvements and tightened with water quality declines.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John D. McClelland & John K. Horowitz, 1999. "The Costs of Water Pollution Regulation in the Pulp and Paper Industry," Land Economics, University of Wisconsin Press, vol. 75(2), pages 220-232.
- Dietrich Earnhart, 2004. "Panel Data Analysis of Regulatory Factors Shaping Environmental Performance," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 391-401, February.
- James T. Hamilton & W. Kip Viscusi, 1999. "Are Risk Regulators Rational? Evidence from Hazardous Waste Cleanup Decisions," American Economic Review, American Economic Association, vol. 89(4), pages 1010-1027, September.
- Wayne B. Gray & Ronald J. Shadbegian, 2002.
"‘Optimal’ Pollution Abatement – Whose Benefits Matter, and How Much?,"
NCEE Working Paper Series
200205, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Sep 2002.
- Gray, Wayne B. & Shadbegian, R.J.Ronald J., 2004. "'Optimal' pollution abatement--whose benefits matter, and how much?," Journal of Environmental Economics and Management, Elsevier, vol. 47(3), pages 510-534, May.
- Wayne B. Gray & Ronald J. Shadbegian, 2002. "Optimal Pollution Abatement - Whose Benefits Matter, and How Much?," NBER Working Papers 9125, National Bureau of Economic Research, Inc.
- Freeman, A. Myrick, III, 2002. "Environmental Policy Since Earth Day I: What Do We Know About the Benefits and Costs?," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 31(1), April.
- Bandyopadhyay Sushenjit & Horowitz John, 2006. "Do Plants Overcomply with Water Pollution Regulations? The Role of Discharge Variability," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 6(1), pages 1-32, January.
- Earnhart, Dietrich, 2004. "Regulatory factors shaping environmental performance at publicly-owned treatment plants," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 655-681, July.
- Michael R. Moore & Elizabeth B. Maclin & David W. Kershner, 2001. "Testing Theories of Agency Behavior: Evidence from Hydropower Project Relicensing Decisions of the Federal Energy Regulatory Commission," Land Economics, University of Wisconsin Press, vol. 77(3), pages 423-442.
- A. Myrick Freeman III, 2002. "Environmental Policy Since Earth Day I: What Have We Gained?," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 125-146, Winter.
- McConnell, Virginia D. & Schwarz, Gregory E., 1992. "The supply and demand for pollution control: Evidence from wastewater treatment," Journal of Environmental Economics and Management, Elsevier, vol. 23(1), pages 54-77, July.
When requesting a correction, please mention this item's handle: RePEc:uwp:landec:v:88:y:2012:iii:1:p:518-535. 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: ()
If references are entirely missing, you can add them using this form.