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Impact of Hazardous Substances Regulations on Small Firms in Delaware and New Jersey

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  • Leon C. Schaller
  • Patrick J. McNulty
  • Karen R. Chinander

Abstract

Regulations under the 1990 Amendments to the Clean Air Act impose significant requirements on firms handling hazardous chemicals. The nature of the regulations would suggest that small firms, because of limited resources and other structural limitations, would experience more difficulty complying with the regulations than large firms. To understand the difficulties imposed by the regulations on small firms, we interviewed ten small firms in Delaware and New Jersey, states with existing hazardous regulations similar to those being considered by the U.S. Environmental Protection Agency, and evaluated their responses to state regulations. The impacts of the environmental regulations on the firms and on the risk levels of their businesses are discussed. Propositions for research into small firms compliance are developed. Possible means for reducing the regulatory burden on small firms while enhancing regulatory effectiveness are suggested.

Suggested Citation

  • 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.
    • Handle: RePEc:wly:riskan:v:18:y:1998:i:2:p:181-189
    DOI: 10.1111/j.1539-6924.1998.tb00929.x
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    References listed on IDEAS

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    1. Fuess, Scott M, Jr & Loewenstein, Mark A, 1990. "Further Analysis of the Theory of Economic Regulation: The Case of the 1969 Coal Mine Health and Safety Act," Economic Inquiry, Western Economic Association International, vol. 28(2), pages 354-389, April.
    2. George J. Stigler, 1971. "The Theory of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 3-21, Spring.
    3. Bartel, Ann P & Thomas, Lacy Glenn, 1985. "Direct and Indirect Effects of Regulation: A New Look at OSHA's Impact," Journal of Law and Economics, University of Chicago Press, vol. 28(1), pages 1-25, April.
    4. Neumann, George R & Nelson, Jon P, 1982. "Safety Regulation and Firm Size: Effects of the Coal Mine Health and Safety Act of 1969," Journal of Law and Economics, University of Chicago Press, vol. 25(2), pages 183-199, October.
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    1. 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.
    2. Patrick J. McNulty & Leon C. Schaller & Karen R. Chinander, 1998. "Communicating Under Section 112(r) of the Clean Air Act Amendments," Risk Analysis, John Wiley & Sons, vol. 18(2), pages 191-197, April.

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