Regulator Reputation , Enforcement , and Environmental Compliance

  title={Regulator Reputation , Enforcement , and Environmental Compliance},
  author={Jay P. Shimshack and Michael M. Ward},
This paper explores empirically the impact of enforcement efforts on environmental compliance, focusing on the role of regulator reputation spillover effects. We find that, on the margin, the impact of a fine for water pollutant violations is about a two-thirds reduction in the statewide violation rate in the year following a fine. This large result obtains through the regulator’s enhanced reputation; the deterrence impact on other plants in a state is almost as strong as the impact on the… CONTINUE READING
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