Economics
Enforcement of pollution regulations in a declining industry
Document Type
Book Chapter
Abstract
A regulatory agency enforcing compliance in a declining industry might recognize that certain plants would close rather than comply, imposing large costs on the local community. Data on EPA enforcement activity in the U.S. steel industry are examined for evidence of this with a two-equation model linking EPA enforcement decisions and firms' plant-closing decisions. The results indicate that the EPA directed fewer enforcement actions toward plants with a high predicted probability of closing and plants that were major employers in their community; also, plants predicted to face relatively heavy enforcement were more likely to close.
Publication Title
Economic Costs and Consequences of Environmental Regulation
Publication Date
2002
First Page
335
Last Page
350
ISBN
9781315188010
DOI
10.4324/9781315188010
Keywords
pollution regulation, environmental regulation
Repository Citation
Deily, Mary E. and Gray, Wayne B., "Enforcement of pollution regulations in a declining industry" (2002). Economics. 110.
https://commons.clarku.edu/faculty_economics/110