Effect of US EPA Self-Enforcement on Environmental Compliance

What is it about?

Empirically assesses whether the EPA self-audit policy has expected deterrence effects on environmental compliance. The first study to address this issue in relation to firm toxic waste emissions. Sample consists of 178 companies in the chemical industry. No significant differences are found for audit-policy and non-audit policy firms with respect to chemical emissions over time. The most significant reductions in toxic emissions are related to formal enforcement actions.

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Why is it important?

Findings are relevant to studies of corporate deterrence and environmental crime (no effect), green criminology, ecological studies, the control of pollution, and green criminology. The lack of a self-audit policy effect indicates that this EPA policy is likely ineffective in controlling environmental pollution.