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Comparison of criminal and administrative penalties for environmental offenses

Author

Listed:
  • Thomas Blondiau

    (TM Leuven)

  • Carole M. Billiet

    (U.Gent, CM&ER)

  • Sandra Rousseau

    (KU Leuven)

Abstract

We conduct a counterfactual analysis to measure the treatment difference between administrative and criminal enforcement of environmental violations. Our aim is to control for the selection bias effect and make a comparison of how similar offenses are treated in both enforcement tracks. This analysis is relevant to answer the question of how deterrence and welfare in a combined criminal-administrative enforcement system compare with an enforcement system relying on criminal penalization only. This is an important question given the observed shift towards two-track penalization systems, combining administrative and criminal penalization, for environmental enforcement in the European Union. We apply matching techniques on a unique dataset of environmental enforcement cases to control for sample selection bias. We match different enforcement cases, based on case characteristics and estimate the average treatment effect for these cases. Overall, we find that the marginal penalty is slightly lower in administrative enforcement compared to criminal enforcement.

Suggested Citation

  • Thomas Blondiau & Carole M. Billiet & Sandra Rousseau, 2015. "Comparison of criminal and administrative penalties for environmental offenses," European Journal of Law and Economics, Springer, vol. 39(1), pages 11-35, February.
    • Handle: RePEc:kap:ejlwec:v:39:y:2015:i:1:d:10.1007_s10657-014-9473-9
    DOI: 10.1007/s10657-014-9473-9
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    References listed on IDEAS

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    Cited by:

    1. Keisaku Higashida, 2019. "Burden of Inspection Costs and Effectiveness of Environmental Regulations," Discussion Paper Series 189, School of Economics, Kwansei Gakuin University.
    2. Jacoby, Gady & Liu, Mingzhi & Wang, Yefeng & Wu, Zhenyu & Zhang, Ying, 2019. "Corporate governance, external control, and environmental information transparency: Evidence from emerging markets," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 58(C), pages 269-283.
    3. Anna Rita Germani & Pasquale Scaramozzino & Andrea Morone & Piergiuseppe Morone, 2017. "Discretionary enforcement and strategic interactions between enforcement agencies and firms: a theoretical and laboratory investigation," Journal of Regulatory Economics, Springer, vol. 52(3), pages 255-284, December.
    4. Wesley Blundell & Gautam Gowrisankaran & Ashley Langer, 2020. "Escalation of Scrutiny: The Gains from Dynamic Enforcement of Environmental Regulations," American Economic Review, American Economic Association, vol. 110(8), pages 2558-2585, August.
    5. Earnhart, Dietrich & Rousseau, Sandra, 2019. "Are lawyers worth the cost? Legal counsel in environmental criminal court cases," International Review of Law and Economics, Elsevier, vol. 60(C).
    6. Liang, Yuanning, 2020. "Do Safety Inspections Improve Safety? Evidence from the Safety Inspection Program for Commercial Motor Vehicles," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304312, Agricultural and Applied Economics Association.

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    More about this item

    Keywords

    Environmental law enforcement; Criminal and administrative enforcement; Propensity score matching; Counterfactual analysis;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • 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
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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