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Environmental Enforcement and Compliance - Lessons from Pollution, Safety, and Tax Settings (Paperback)
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Environmental Enforcement and Compliance - Lessons from Pollution, Safety, and Tax Settings (Paperback)
Series: Foundations and Trends (R) in Microeconomics
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Environmental Enforcement and Compliance: Lessons from Pollution,
Safety, and Tax Settings reviews what economists do and do not know
about the effectiveness and cost effectiveness of pollution
monitoring and enforcement. The focus is mainly on lessons for and
from the U.S. policy environment but discusses important research
findings from international Settings as well. The authors draw most
of their insights from a Subjective assessment of the existing
theoretical, experimental, and empirical environmental economics
literature but, where appropriate, lessons are drawn from criminal,
tax compliance, and occupational health and safety Settings. The
criminal literature is examined because the historical law and
economic foundations of the environmental enforcement literature
were developed in this context. The tax context is considered
because the availability of data have generated an especially rich
and diverse theoretical, empirical, and experimental literature,
which has also been often applied to environmental compliance. The
authors draw on the health and safety literature because the
Occupational Safety and Health Administration and the Environmental
Protection Agency have similarly broad regulatory authority and
often share institutional features. Environmental Enforcement and
Compliance: Lessons from Pollution, Safety, and Tax Settings
focuses is on five questions: (1) What do environmental monitoring
and enforcement actions look like in the real world? (2) How do we
assess environmental compliance and deterrence? (3) Do
environmental monitoring and enforcement actions get results? (4)
How, why, and when do inspections and sanctions achieve compliance
and reduce pollution? And (5) what do the answers to the preceding
questions tell us about designing and implementing more effective
and more cost effective public policies for the environment? After
an introduction, section 2 reviews key institutions. Section 3
discusses measuring environmental performance and compliance,
paying particular attention to the perils and promise of assessing
compliance in the presence of self-reported pollution. Section 4
summarizes how inspections and sanctions might influence
compliance, and section 5 reviews the existing evidence on the
deterrence effects of environmental monitoring and enforcement.
Section 6 investigates lessons from occupational safety and tax
compliance Settings. Section 7 explores mechanisms and motivations
for compliance, focusing on both rational-actor models and more
recent socio-behavioral models. Section 8 highlights key lessons
for policy, and section 9 briefly concludes with directions for
future research.
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