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Ambient inspections in environmental enforcement: an extension

Author

Listed:
  • Laurent Franckx

    (K.U.Leuven, C.E.S., Energy, Transport and Environment
    Royal Military Academy)

Abstract

We consider an inspection game between an arbitrary number of polluting firms and an agency who can choose to monitor ambient pollution. We obtain an equilibrium where all firms comply with the same probability and where the inspection agency inspects all firms individually if ambient pollution exceeds an endogenous threshold. If the fine for noncompliance is high enough, the agency's costs are lower then if it does not monitor ambient pollution. If the firms believe the agency's announcement that it conducts ambient inspections, their probability of compliance can be so high that the agency will want to deviate.

Suggested Citation

  • Laurent Franckx, 2001. "Ambient inspections in environmental enforcement: an extension," Energy, Transport and Environment Working Papers Series ete0106, KU Leuven, Department of Economics - Research Group Energy, Transport and Environment.
    • Handle: RePEc:ete:etewps:ete0106
    as

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    File URL: http://feb.kuleuven.be/drc/Economics/misc/ete_workingpapers/ete-wp01-06.pdf
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    More about this item

    Keywords

    environmental enforcement; ambient inspections; commitment;
    All these keywords.

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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