Firm Decision-making Structure and Compliance with Environmental Regulations: Evidence from Environmental Auditing
We explore how limits to our insight on the underlying decision-making structure of regulated entities may affect the conclusions we draw about the likely impacts of environmental policies, with a focus on environmental auditing. We examine the conditions under which a multi-facility firm chooses to adopt a standardized auditing. Our firm-level empirical analysis confirms that a uniform auditing outcome is less likely among firms (1) with a more heterogeneous portfolio of facilities, and (2) that are less likely to make decision errors. We examine the implications of adding controls for firm decision-making structure in a facility-level empirical analysis of auditing’s impact on compliance. Our results suggest that the estimated compliance impact of auditing varies depending on whether or not we include these controls.
|Date of creation:||25 Aug 2012|
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- Mary Evans & Lirong Liu & Sarah Stafford, 2011.
"Do environmental audits improve long-term compliance? Evidence from manufacturing facilities in Michigan,"
Journal of Regulatory Economics,
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"Regulator reputation, enforcement, and environmental compliance,"
25994, University Library of Munich, Germany.
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- repec:clu:wpaper:0102-55 is not listed on IDEAS
- 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.
- Friesen, Lana, 2006. "The social welfare implications of industry self-auditing," Journal of Environmental Economics and Management, Elsevier, vol. 51(3), pages 280-294, May.
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