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Investigating Discretionary Environmental Enforcement: a pilot experiment

Author

Listed:
  • Germani, Anna Rita
  • Morone, Andrea
  • Morone, Piergiuseppe
Abstract
In this work, we conducted a laboratory experiment in order to test the findings of a theoretical environmental enforcement model played as a strategic game where the firm’s behavior is influenced by the course of actions discretionally undertaken by both the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Justice (DOJ). Our experimental findings suggest that the presence of the DOJ can be counterproductive in increasing social welfare, since it implies solely additional enforcement costs, which, in turn, might reduce the probability of conducting inspections by the EPA without affecting the probability of firm’s compliance.

Suggested Citation

  • Germani, Anna Rita & Morone, Andrea & Morone, Piergiuseppe, 2009. "Investigating Discretionary Environmental Enforcement: a pilot experiment," MPRA Paper 12735, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:12735
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    References listed on IDEAS

    as
    1. Garoupa, Nuno, 2001. "Optimal magnitude and probability of fines," European Economic Review, Elsevier, vol. 45(9), pages 1765-1771, October.
    2. Steven Shavell & A. Mitchell Polinsky, 2000. "The Economic Theory of Public Enforcement of Law," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 45-76, March.
    3. George J. Stigler, 1974. "The Optimum Enforcement of Laws," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 55-67, National Bureau of Economic Research, Inc.
    4. Steven Shavell, 2003. "Economic Analysis of the General Structure of the Law," NBER Working Papers 9699, National Bureau of Economic Research, Inc.
    5. Arruñada, Benito & Casari, Marco, 2016. "Fragile markets: An experiment on judicial independence," Journal of Economic Behavior & Organization, Elsevier, vol. 129(C), pages 142-156.
    6. B. Arru ada & M. Casari, 2007. "How enforcement institutions affect markets," Working Papers 616, Dipartimento Scienze Economiche, Universita' di Bologna.
    7. Nuno Garoupa, 1997. "The Theory of Optimal Law Enforcement," Journal of Economic Surveys, Wiley Blackwell, vol. 11(3), pages 267-295, September.
    8. Polinsky, A. Mitchell & Shavell, Steven, 1984. "The optimal use of fines and imprisonment," Journal of Public Economics, Elsevier, vol. 24(1), pages 89-99, June.
    9. repec:bla:jecsur:v:11:y:1997:i:3:p:267-95 is not listed on IDEAS
    10. Shavell, Steven, 1993. "The Optimal Structure of Law Enforcement," Journal of Law and Economics, University of Chicago Press, vol. 36(1), pages 255-287, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    classroom experiments; environmental enforcement; environmental economics;
    All these keywords.

    JEL classification:

    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General

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