Targeting Enforcement to Improve Compliance with Environmental Regulations
نویسنده
چکیده
By targeting enforcement efforts on specific segments of the regulated community, greater compliance with environmental regulations can be achieved. In this paper, the inspection minimizing targeting scheme with two groups is derived. Firms are moved at random into the target group, while escape from the target group occurs only when an inspection reveals the firm is in compliance. The optimal targeting scheme reduces inspection costs compared with the strategy suggested by Harrington (1988), where firms are moved into the target group on the basis of compliance record. However, the range of parameter values for which the optimal solution is feasible is limited.
منابع مشابه
High Priority Violation Policy and Targeting Enforcement: An Empirical Analysis of its Effectiveness and Efficiency
The High Priority Violation (HPV) Policy represents a way to target enforcement in environmental regulations; serious air pollution violators are targeted with timely and appropriate enforcement, and such enforcement usually means high degree of regulatory scrutiny. Despite the importance of enforcement, the empirical literature on the effectiveness and efficiency of targeting enforcement is ve...
متن کاملEnforcement and over-compliance
Economists generally view environmental enforcement as a tool to secure compliance with regulations. This paper demonstrates that credible enforcement significantly increases statutory over-compliance with regulations as well. We find that many plants with discharges typically below legally permitted levels reduce discharges further when regulators issue fines, even on other plants. Also, non-c...
متن کاملEconomics Department Working Paper 2007
Economists generally view environmental enforcement as a tool to secure compliance with regulations. This paper demonstrates that credible enforcement significantly increases statutory overcompliance with regulations as well. We find that many plants with discharges typically below legally permitted levels reduce discharges further when regulators issue fines, even on other plants. Also, likely...
متن کاملReview of the Economics of Enforcing Environmental Policies
This article reviews fundamental economic concepts of enforcing environmental policies. It describes the basic economic theory of compliance with environmental regulations and reviews empirical tests of hypotheses that the theory produces. It also presents some conceptual notions about the efficient design of enforcement strategies. The article deals with enforcement of traditional command-and-...
متن کاملMonitoring and Enforcement of Environmental Policy
This article reviews the economics literature on monitoring and enforcement of environmental policy. In the last few years there has been a rapid growth in both theoretical developments and empirical studies of monitoring and enforcement. Various factors have contributed to this growth, including (1) the growth of the law and economics literature and its interest in issues of law enforcement an...
متن کامل