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Stated choices of environmental managers: The role of punishment

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  • Earnhart, Dietrich

Abstract

This study explores the roles of enforcement in explaining management choices tied to regulatory compliance. Within this exploration, the study pursues two research objectives. First, it discerns the separate effects of punishment certainty and punishment severity on compliance decisions; this task is generally difficult especially since it requires constructing measures of the beliefs held by individuals or regulated businesses. Second, the study compares the two effects. The study’s most important contribution is to investigate these two issues using stated choice scenarios posed to environmental management professionals working at businesses operating within the Clean Water Act regulatory framework. Results reveal that regulated facilities respond to increases in fine size and fine likelihood with equal sensitivity.

Suggested Citation

  • Earnhart, Dietrich, 2020. "Stated choices of environmental managers: The role of punishment," International Review of Law and Economics, Elsevier, vol. 63(C).
    • Handle: RePEc:eee:irlaec:v:63:y:2020:i:c:s0144818819300535
    DOI: 10.1016/j.irle.2020.105908
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    More about this item

    JEL classification:

    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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