Environmental Economics

Economic Efficiency of Enforcement and Enforcement-Related Monitoring: Project Period One Report

This document consists of four studies. The first is an empirical analysis of the effects of EPA inspections on the pulp and paper industry. This analysis used information from EPA's effluent monitoring database to assess the impact of EPA plant inspections on subsequent discharge levels. Another document in this database, EE-0292, is a later version of this first study. The second study is a review of the literature on the enforcement of EPA standards. Three areas were of particular concern: (1) effluent charges and standards, (2) optimal enforcement of regulations, and (3) permits, licenses, and related policies. The third study addresses procedures for setting optimal penalties for environmental regulation, focusing particularly on EPA's enforcement methods, such as telephone calls and letters, to civil court cases that can lead to civil and criminal sanctions. The last study in this document focuses on the appropriate regulation of involuntary and hidden risks, exploring (1) welfare losses of these risks relative to those caused by voluntarily-assumed and known risks, (2) various concepts of compensation for these harms, and (3) enforcement considerations for hidden risks.

  • Keywords

    2. Cost-Benefit and Cost Effectiveness Analysis
    2. Cost-Benefit and Cost Effectiveness Analysis - Enforcement and Monitoring
    2. Cost-Benefit and Cost Effectiveness Analysis - Methodology
    Environmental Media:
    b. Water
    b. Water - Surface
    Viscusi, W. Kip
    Magat, Wesley A.
    EPA Project Officer/ Manager:
    Carlin, Alan
    Geographic Area:
    Study Purpose:
    Empirical Application, Methodology Development & Evaluation, Policy Evaluation
    Report Series:
    Economic Efficiency of Enforcement
    Inventory Record #: EE-0293
    List of all reports in the Series:
  • Participating Organizations

    Research Organization:

    Duke University, Fuqua School of Business, Center for the Study of Business RegulationAddress:
    City: State: ZIP:
    Phone: Fax:
    Funding Organization:
    Environmental Protection Agency, Office of Policy, Planning and Evaluation, Economic Analysis BranchAddress:
    City: State: ZIP:
    Phone: Fax:
  • Report Details
    Number of Pages:
    Grant/Contract #:
  • How to Obtain Report

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    Date Linked: 05/28/2009