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Financial Assistance and Environmental Compliance: Evidence from the Clean Water Act and the Clean Water State Revolving Fund

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  • Sharaban T. Anica
  • Levan Elbakidze

Abstract

Using data from the National Pollution Discharge Elimination System compliance and the Clean Water State Revolving Funds (CWSRF) for wastewater treatment plants in nine states between 2010 and 2018, we examine (1) the effect of noncompliance on the distribution and size of awarded CWSRF loans, and (2) the effects of the CWSRF provision and award size on postfunding compliance. We observe that funded facilities have poorer compliance records than the unfunded ones and that funded facilities decrease violations within two years after receiving financial support. On average, a $50 million CWSRF loan decreases violations by one count within two postfunding years.

Suggested Citation

  • Sharaban T. Anica & Levan Elbakidze, 2023. "Financial Assistance and Environmental Compliance: Evidence from the Clean Water Act and the Clean Water State Revolving Fund," Land Economics, University of Wisconsin Press, vol. 99(2), pages 222-244.
    • Handle: RePEc:uwp:landec:v:99:y:2023:i:2:p:222-244
    Note: DOI: https://doi.org/10.3368/le.061121-0060R1
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    File URL: http://le.uwpress.org/cgi/reprint/99/2/222
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    More about this item

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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