IDEAS home Printed from https://ideas.repec.org/a/kap/jrisku/v32y2006i1p57-76.html
   My bibliography  Save this article

Assessing the Accuracy of Self-Reported Data: an Evaluation of the Toxics Release Inventory

Author

Listed:
  • Scott Marchi
  • James Hamilton

Abstract

Self-reported regulatory data are hard to verify. This article compares air emissions reported by plants in the Toxics Release Inventory with chemical concentration levels measured by EPA pollution monitors. We find that the large drops in air emissions reported by firms in the TRI are not always matched by similar reductions in measured concentrations from EPA monitors. When the first digits of the monitored chemical concentrations follow a monotonically decreasing distribution, we expect (via Benford's Law) a similar distribution of first digits for the TRI data. For lead and nitric acid the self-reported data do not follow the expected first digit pattern. This suggests that for these two heavily regulated chemicals plants are not reporting accurate estimates of their air emissions. Copyright Springer Science + Business Media, Inc. 2006

Suggested Citation

  • Scott Marchi & James Hamilton, 2006. "Assessing the Accuracy of Self-Reported Data: an Evaluation of the Toxics Release Inventory," Journal of Risk and Uncertainty, Springer, vol. 32(1), pages 57-76, January.
  • Handle: RePEc:kap:jrisku:v:32:y:2006:i:1:p:57-76
    DOI: 10.1007/s10797-006-6666-3
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10797-006-6666-3
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s10797-006-6666-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. James T. Hamilton & W. Kip Viscusi, 1999. "Calculating Risks?: The Spatial and Political Dimensions of Hazardous Waste Policy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262082780, April.
    2. Mark Stephan, 2002. "Environmental Information Disclosure Programs: They Work, but Why?," Social Science Quarterly, Southwestern Social Science Association, vol. 83(1), pages 190-205, March.
    3. James T. Hamilton, 1993. "Politics and Social Costs: Estimating the Impact of Collective Action on Hazardous Waste Facilities," RAND Journal of Economics, The RAND Corporation, vol. 24(1), pages 101-125, Spring.
    4. Maxwell, John W & Lyon, Thomas P & Hackett, Steven C, 2000. "Self-Regulation and Social Welfare: The Political Economy of Corporate Environmentalism," Journal of Law and Economics, University of Chicago Press, vol. 43(2), pages 583-617, October.
    5. Khanna, Madhu & Quimio, Wilma Rose H. & Bojilova, Dora, 1998. "Toxics Release Information: A Policy Tool for Environmental Protection," Journal of Environmental Economics and Management, Elsevier, vol. 36(3), pages 243-266, November.
    6. Seema Arora & Timothy N. Cason, 1999. "Do Community Characteristics Influence Environmental Outcomes? Evidence from the Toxics Release Inventory," Southern Economic Journal, John Wiley & Sons, vol. 65(4), pages 691-716, April.
    7. FitzGerald, John & Scott, Susan & Morgenroth, Edgar & FitzGerald, John, 2006. "Environment," Book Chapters, in: Morgenroth, Edgar (ed.),Ex-Ante Evaluation of the Investment Priorities for the National Development Plan 2007-2013, chapter 7, pages 98-102, Economic and Social Research Institute (ESRI).
      • Scott, Susan, 1997. "The Environment," Book Chapters, in: Honohan, Patrick (ed.),EU Structural Funds in Ireland: A Mid-Term Evaluation of the CSF 1994-99, Economic and Social Research Institute (ESRI).
    8. Eric Helland, 1998. "The Enforcement Of Pollution Control Laws: Inspections, Violations, And Self-Reporting," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 141-153, February.
    9. Hamilton James T., 1995. "Pollution as News: Media and Stock Market Reactions to the Toxics Release Inventory Data," Journal of Environmental Economics and Management, Elsevier, vol. 28(1), pages 98-113, January.
    10. James T. Hamilton, 1995. "Testing for environmental racism: Prejudice, profits, political power?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 14(1), pages 107-132.
    11. Jeffrey C. Terry & Bruce Yandle, 1997. "EPA's toxic release inventory: stimulus and response," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 18(6), pages 433-442.
    12. Marakovits, Donita M. & Considine, Timothy J., 1996. "An Empirical Analysis of Exposure-Based Regulation to Abate Toxic Air Pollution," Journal of Environmental Economics and Management, Elsevier, vol. 31(3), pages 337-351, November.
    13. James T. Hamilton & W. Kip Viscusi, 1999. "Are Risk Regulators Rational? Evidence from Hazardous Waste Cleanup Decisions," American Economic Review, American Economic Association, vol. 89(4), pages 1010-1027, September.
    14. Konar, Shameek & Cohen, Mark A., 1997. "Information As Regulation: The Effect of Community Right to Know Laws on Toxic Emissions," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 109-124, January.
    15. Christie, William G. & Schultz, Paul H., 1999. "The initiation and withdrawal of odd-eighth quotes among Nasdaq stocks: an empirical analysis," Journal of Financial Economics, Elsevier, vol. 52(3), pages 409-442, June.
    16. Khanna, Madhu & Damon, Lisa A., 1999. "EPA's Voluntary 33/50 Program: Impact on Toxic Releases and Economic Performance of Firms," Journal of Environmental Economics and Management, Elsevier, vol. 37(1), pages 1-25, January.
    17. Hamilton, James T, 1999. "Exercising Property Rights to Pollute: Do Cancer Risks and Politics Affect Plant Emission Reductions?," Journal of Risk and Uncertainty, Springer, vol. 18(2), pages 105-124, August.
    18. John T. Scott, 1997. "Schumpeterian competition and environmental R&D," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 18(6), pages 455-469.
    19. Jon D. Harford, 1997. "Firm ownership patterns and motives for voluntary pollution control," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 18(6), pages 421-431.
    20. Seema Arora & Timothy N. Cason, 1996. "Why Do Firms Volunteer to Exceed Environmental Regulations? Understanding Participation in EPA's 33/50 Program," Land Economics, University of Wisconsin Press, vol. 72(4), pages 413-432.
    21. Dumas, Christopher F. & Devine, John H., 2000. "Detecting Evidence Of Non-Compliance In Self-Reported Pollution Emissions Data: An Application Of Benford'S Law," 2000 Annual meeting, July 30-August 2, Tampa, FL 21740, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Madhu Khanna, 2001. "Non‐Mandatory Approaches to Environmental Protection," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 291-324, July.
    2. Saha, Shrawantee & Mohr, Robert D., 2013. "Media attention and the Toxics Release Inventory," Ecological Economics, Elsevier, vol. 93(C), pages 284-291.
    3. Brouhle, Keith & Griffiths, Charles & Wolverton, Ann, 2009. "Evaluating the role of EPA policy levers: An examination of a voluntary program and regulatory threat in the metal-finishing industry," Journal of Environmental Economics and Management, Elsevier, vol. 57(2), pages 166-181, March.
    4. Afsah, Shakeb & Blackman, Allen & Ratunanda, Damayanti, 2000. "How Do Public Disclosure Pollution Control Programs Work? Evidence from Indonesia," Discussion Papers 10515, Resources for the Future.
    5. Kathryn Harrison & Werner Antweiler, 2003. "Incentives for pollution abatement: Regulation, regulatory threats, and non-governmental pressures," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 22(3), pages 361-382.
    6. Stefan Ambec & Paul Lanoie, 2007. "When and Why Does It Pay To Be Green?," CIRANO Working Papers 2007s-20, CIRANO.
    7. Keith Brouhle & Charles Griffiths & Ann Wolverton, 2007. "Evaluating the Effectiveness of EPA Voluntary Programs: An Examination of the Strategic Goals Program for Metal Finishers," NCEE Working Paper Series 200706, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised May 2007.
    8. Linda Bui, 2005. "Public Disclosure of Private Information as a Tool for Regulating Environmental Emissions: Firm-Level Responses by Petroleum Refineries to the Toxics Release Inventory," Working Papers 05-13, Center for Economic Studies, U.S. Census Bureau.
    9. Magali Delmas & Michael W. Toffel, 2004. "Stakeholders and environmental management practices: an institutional framework," Business Strategy and the Environment, Wiley Blackwell, vol. 13(4), pages 209-222, July.
    10. Cole, Matthew A. & Elliott, Robert J.R. & Khemmarat, Khemrutai, 2013. "Local exposure to toxic releases: Examining the role of ethnic fractionalization and polarisation," Ecological Economics, Elsevier, vol. 93(C), pages 249-259.
    11. Blackman, Allen, 2009. "Alternative Pollution Control Policies in Developing Countries: Informal, Informational, and Voluntary," RFF Working Paper Series dp-09-10, Resources for the Future.
    12. Nicole Darnall & Joann Carmin, 2005. "Greener and cleaner? The signaling accuracy of U.S. voluntary environmental programs," Policy Sciences, Springer;Society of Policy Sciences, vol. 38(2), pages 71-90, September.
    13. Mark Cohen & V. Santhakumar, 2007. "Information Disclosure as Environmental Regulation: A Theoretical Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(3), pages 599-620, July.
    14. Dietrich Earnhart & Lubomir Lizal, 2007. "Does Better Environmental Performance Affect Revenues, Cost, or Both? Evidence From a Transition Economy," William Davidson Institute Working Papers Series wp856, William Davidson Institute at the University of Michigan.
    15. Robert Innes & Abdoul G. Sam, 2008. "Voluntary Pollution Reductions and the Enforcement of Environmental Law: An Empirical Study of the 33/50 Program," Journal of Law and Economics, University of Chicago Press, vol. 51(2), pages 271-296, May.
    16. Bjorner, Thomas Bue & Hansen, L.G.Lars Garn & Russell, Clifford S., 2004. "Environmental labeling and consumers' choice--an empirical analysis of the effect of the Nordic Swan," Journal of Environmental Economics and Management, Elsevier, vol. 47(3), pages 411-434, May.
    17. Banzhaf, H. Spencer, 2011. "The Political Economy of Environmental Justice," MPRA Paper 101191, University Library of Munich, Germany.
    18. Rory Sullivan & Andy Gouldson, 2007. "Pollutant release and transfer registers: examining the value of government‐led reporting on corporate environmental performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 14(5), pages 263-273, December.
    19. Parry, Ian & Walls, Margaret & Sigman, Hilary & Williams III, Roberton, 2005. "The Incidence of Pollution Control Policies," RFF Working Paper Series dp-05-24, Resources for the Future.
    20. Wang, Xiao & Deltas, George & Khanna, Madhu & Bi, Xiang, 2017. "Community Pressure and the Relocation of Toxic Facilities," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258390, Agricultural and Applied Economics Association.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jrisku:v:32:y:2006:i:1:p:57-76. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.