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Can Consumers Enforce Environmental Regulations? The Role of the Market in Hazardous Waste Compliance

  • Sarah L. Stafford


    (Department of Economics, College of William and Mary)

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    To assess the role that consumers can play in encouraging environmental compliance, we examine the U.S. hazardous waste management industry to determine (1) whether environmental performance affects consumer demand and (2) whether markets affect compliance behavior. We find that noncompliance does decrease demand, at least in the short-term. While we do not find any evidence that market size affects compliance, local competition does appear to increase compliance. However, as competition becomes less localized, it has a smaller, if any, effect. Finally, regardless of the pressures exerted by consumers to comply, commercial managers are more likely to violate than on-site managers.

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    Paper provided by Department of Economics, College of William and Mary in its series Working Papers with number 19.

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    Length: 34 pages
    Date of creation: 28 Jun 2005
    Date of revision:
    Handle: RePEc:cwm:wpaper:19
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    1. Badrinath, S G & Bolster, Paul J, 1996. "The Role of Market Forces in EPA Enforcement Activity," Journal of Regulatory Economics, Springer, vol. 10(2), pages 165-81, September.
    2. Sigman, Hilary, 1996. "The Effects of Hazardous Waste Taxes on Waste Generation and Disposal," Journal of Environmental Economics and Management, Elsevier, vol. 30(2), pages 199-217, March.
    3. Anna Alberini & John Bartholomew, 1999. "The Determinants Of Hazardous Waste Disposal Choice: An Empirical Analysis Of Halogenated Solvent Waste Shipments," Contemporary Economic Policy, Western Economic Association International, vol. 17(3), pages 309-320, 07.
    4. Bjorner, Thomas Bue & Hansen, L.G.Lars Garn & Russell, Clifford S., 2004. "Environmental labeling and consumers' choice--an empirical analysis of the effect of the Nordic Swan," Journal of Environmental Economics and Management, Elsevier, vol. 47(3), pages 411-434, May.
    5. Konar, Shameek & Cohen, Mark A., 1997. "Information As Regulation: The Effect of Community Right to Know Laws on Toxic Emissions," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 109-124, January.
    6. Anton, W.R.Q.Wilma Rose Q. & Deltas, George & Khanna, Madhu, 2004. "Incentives for environmental self-regulation and implications for environmental performance," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 632-654, July.
    7. Hamilton James T., 1995. "Pollution as News: Media and Stock Market Reactions to the Toxics Release Inventory Data," Journal of Environmental Economics and Management, Elsevier, vol. 28(1), pages 98-113, January.
    8. Jean H. Peretz & Robert A. Bohm & Philip D. Jasienczyk, 1997. "Environmental policy and the reduction of hazardous waste," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 16(4), pages 556-574.
    9. Lanoie, Paul & Laplante, Benoit & Roy, Maite, 1998. "Can capital markets create incentives for pollution control?," Ecological Economics, Elsevier, vol. 26(1), pages 31-41, July.
    10. Seema Arora & Timothy N. Cason, 1996. "Why Do Firms Volunteer to Exceed Environmental Regulations? Understanding Participation in EPA's 33/50 Program," Land Economics, University of Wisconsin Press, vol. 72(4), pages 413-432.
    11. Foulon, Jerome & Lanoie, Paul & Laplante, Benoit, 2002. "Incentives for Pollution Control: Regulation or Information?," Journal of Environmental Economics and Management, Elsevier, vol. 44(1), pages 169-187, July.
    12. T. Randolph Beard, 1990. "Bankruptcy and Care Choice," RAND Journal of Economics, The RAND Corporation, vol. 21(4), pages 626-634, Winter.
    13. Teisl, Mario F. & Roe, Brian & Hicks, Robert L., 2002. "Can Eco-Labels Tune a Market? Evidence from Dolphin-Safe Labeling," Journal of Environmental Economics and Management, Elsevier, vol. 43(3), pages 339-359, May.
    14. Poirier, Dale J., 1980. "Partial observability in bivariate probit models," Journal of Econometrics, Elsevier, vol. 12(2), pages 209-217, February.
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