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Will additional federal enforcement improve the performance of pipelines in the U.S.?

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  • Stafford, Sarah L.

Abstract

This paper provides the first empirical analysis of the effectiveness of regulatory enforcement in increasing the environmental and safety performance of U.S. natural gas and hazardous liquid pipeline operators. The analysis combines data on federal regulatory inspections, enforcement actions, and penalties with data on injuries, fatalities, property damage, and barrels of product lost through pipeline “incidents” for 2006–2011 for the 344 largest pipeline operators in the U.S. The results of the analysis do not provide compelling evidence that either federal inspections or civil penalties are particularly effective in increasing performance; however, the number of federal cases initiated against an operator does have a significant effect on many forms of performance, although not for incidents in general. The results also suggest that some targeting of federal enforcement resources is based on past performance, but there may be room for even more effective targeting. Finally, the analysis reveals interesting patterns between state and federal enforcement efforts.

Suggested Citation

  • Stafford, Sarah L., 2014. "Will additional federal enforcement improve the performance of pipelines in the U.S.?," International Review of Law and Economics, Elsevier, vol. 37(C), pages 137-146.
    • Handle: RePEc:eee:irlaec:v:37:y:2014:i:c:p:137-146
    DOI: 10.1016/j.irle.2013.07.009
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    References listed on IDEAS

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    4. Wayne B. Gray & Jay P. Shimshack, 2011. "The Effectiveness of Environmental Monitoring and Enforcement: A Review of the Empirical Evidence," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 5(1), pages 3-24, Winter.
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    Cited by:

    1. Alm, James & Shimshack, Jay, 2014. "Environmental Enforcement and Compliance: Lessons from Pollution, Safety, and Tax Settings," Foundations and Trends(R) in Microeconomics, now publishers, vol. 10(4), pages 209-274, December.
    2. Walls, W.D. & Zheng, Xiaoli, 2021. "Environmental regulation and safety outcomes: Evidence from energy pipelines in Canada," Resource and Energy Economics, Elsevier, vol. 64(C).
    3. Jay P. Shimshack, 2014. "The Economics of Environmental Monitoring and Enforcement," Annual Review of Resource Economics, Annual Reviews, vol. 6(1), pages 339-360, October.

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    More about this item

    Keywords

    Regulation; Environmental Performance; Enforcement; Pipelines;
    All these keywords.

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities

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