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Compliance Strategies and Regulatory Effectiveness of Performance‐Based Regulation of Chemical Accident Risks

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  • Karen R. Chinander
  • Paul R. Kleindorfer
  • Howard C. Kunreuther

Abstract

This paper investigates the role that performance‐based regulations can play in linking a firm's environmental, health, and safety concerns with their corporate strategy. The specific focus is on the performance standards required by the Clean Air Act Amendments (CAAA) which require firms that store or use certain chemicals to develop a Risk Management Plan (RMP) for reducing the likelihood and impact of accidents at their plants. Data from a series of case studies and interviews of executives in chemical firms reveal that proactive companies integrated many of the requirements of the CAAA into their management systems prior to the regulatory requirements. Most of these firms tend to be large ones. Small firms often lack the resources to implement these regulations and hence have tended to have a more difficult time with compliance.

Suggested Citation

  • Karen R. Chinander & Paul R. Kleindorfer & Howard C. Kunreuther, 1998. "Compliance Strategies and Regulatory Effectiveness of Performance‐Based Regulation of Chemical Accident Risks," Risk Analysis, John Wiley & Sons, vol. 18(2), pages 135-143, April.
    • Handle: RePEc:wly:riskan:v:18:y:1998:i:2:p:135-143
    DOI: 10.1111/j.1539-6924.1998.tb00925.x
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    References listed on IDEAS

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    5. Leon C. Schaller & Patrick J. McNulty & Karen R. Chinander, 1998. "Impact of Hazardous Substances Regulations on Small Firms in Delaware and New Jersey," Risk Analysis, John Wiley & Sons, vol. 18(2), pages 181-189, April.
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    Cited by:

    1. Fenling Feng & Chengguang Liu & Jiaqi Zhang, 2020. "China's Railway Transportation Safety Regulation System Based on Evolutionary Game Theory and System Dynamics," Risk Analysis, John Wiley & Sons, vol. 40(10), pages 1944-1966, October.
    2. Paul Calcott, 2010. "Mandated self-regulation: the danger of cosmetic compliance," Journal of Regulatory Economics, Springer, vol. 38(2), pages 167-179, October.
    3. Vicki M. Bier & Shi‐Woei Lin, 2013. "Should the Model for Risk‐Informed Regulation be Game Theory Rather than Decision Theory?," Risk Analysis, John Wiley & Sons, vol. 33(2), pages 281-291, February.

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