Replication Code and Data for: Escalation of Scrutiny: The Gains from Dynamic Enforcement of Environmental Regulations

Principal Investigator(s):  View help for Principal Investigator(s) Wesley Blundell, Washington State University; Gautam Gowrisankaran, University of Arizona; Ashley Langer, University of Arizona

Version:  View help for Version V1

Name File Type Size Last Modified
  Code 05/31/2020 10:52:AM
  Counterfactual_Output 03/30/2020 05:46:PM
  Data 03/30/2020 05:50:PM
  Log_Files 03/30/2020 06:02:PM
  Parameter_Estimates 03/30/2020 06:06:PM
readme.pdf application/pdf 102.4 KB 05/30/2020 08:04:PM

Project Citation: 

Blundell, Wesley, Gowrisankaran, Gautam, and Langer, Ashley. Replication Code and Data for: Escalation of Scrutiny: The Gains from Dynamic Enforcement of Environmental Regulations. Nashville, TN: American Economic Association [publisher], 2020. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2020-07-23. https://doi.org/10.3886/E118564V1

Project Description

Summary:  View help for Summary
Abstract:
The U.S. Environmental Protection Agency uses a dynamic approach to enforcing air pollution regulations, with repeat offenders subject to high fines and designation as high priority violators (HPV). We estimate the value of dynamic enforcement by developing and estimating a dynamic model of a plant and regulator, where plants decide when to invest in pollution abatement technologies. We use a fixed grid approach to estimate random coefficient specifications. Investment, fines, and HPV designation are costly to most plants. Eliminating dynamic enforcement would raise pollution damages by 164% with constant fines or raise fines by 519% with constant pollution damages. 

Scope of Project

Subject Terms:  View help for Subject Terms monitoring and compliance; investment; air pollution; dynamic estimation; escalation mechanisms; Clean Air Act
JEL Classification:  View help for JEL Classification
      C57 Econometrics of Games and Auctions
      Q53 Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
      Q58 Environmental Economics: Government Policy
Geographic Coverage:  View help for Geographic Coverage United States
Time Period(s):  View help for Time Period(s) 2007 – 2013 (2007-2013 (Q1 2007 to Q3 2013 (plus lags)))


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V1 [2020-07-23]

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