A duration analysis of environmental alternative dispute resolution in Japan

a r t i c l e i n f o The use of alternative dispute resolution (ADR) to solve environmental disputes is expected to increase in the near future. Therefore, it is important to evaluate the effectiveness of environmental ADR empirically. However, the majority of empirical literature of environmental ADR provides merely descriptive case studies. Using a large micro-level database from Japan, this paper identifies the characteristics of pollution disputes addressed by ADR and correlates those characteristics to the duration of disputes. Using the strike analysis for reference, we estimate the standard duration models of environmental ADR. The analyses demonstrate that pollution disputes involving health damage are resolved promptly. Air pollution problems affecting multiple households are also expeditiously resolved. Moreover, we find that representative actions prolong the settlement of environmental disputes. Environmental disputes have traditionally been resolved through litigation in which a court determines liability for environmental damage and the compensation for victims is based on the evidence presented. Because trials are expensive and time-consuming, alternative dispute resolution (ADR) techniques have increasingly been applied, in recent years, to settle environmental disputes (Andrew, 2001). ADR is a non-adversarial process for resolving disputes with the assistance of a neutral third party. The most common forms of ADR are mediation and arbitration. In the mediation process, a third party does not decide the case but rather facilitates negotiation between disputing parties to reach a mutual solution. In the arbitration process, disputing parties agree to abrogate their right to trial and appeals and agree to abide by the third party's decision. If both processes disputing parties can save time and money, maintain confidentiality, preserve their relationship, and use expert evaluation. 1 Many countries have promoted the use of ADR techniques for dispute resolution due to these attractive features. In the United States, the use of environmental ADR has steadily increased since the successful resolution of the difficult dispute over flood control measures on the Snoqualmie River in Washington State. Over the past two decades, the U.S. Congress has encouraged federal agencies to increase the use of consensual dispute resolution processes. This movement has been accelerated by Executive Order 13353–Cooperative Conservation. 2 The U.S. Environmental Protection Agency recently has stated that it will strongly support use of ADR to deal with disputes and potential conflicts (US EPA, 2000). In Europe, environmental ADR had rarely been employed (Holzinger, 2000). However, the European Commission established basic …