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Compliance costs, regulation, and environmental performance: Controlling truck emissions in the US

Thornton, Dorothy; Kagan, Robert A; Gunningham, Neil

Description

When explaining regulatory policymaking and the behavior of regulated business firms, scholars have supplemented economic models by emphasizing the role of public-regarding entrepreneurial politics and of normative pressures on firms. This article explores the limits of such entrepreneurial politics and "social license" pressures by examining regulation of emissions from diesel powered trucks in the US. We find that the economic cost of obtaining the best available control technology - new...[Show more]

dc.contributor.authorThornton, Dorothy
dc.contributor.authorKagan, Robert A
dc.contributor.authorGunningham, Neil
dc.date.accessioned2015-12-08T22:38:55Z
dc.identifier.issn1748-5983
dc.identifier.urihttp://hdl.handle.net/1885/36016
dc.description.abstractWhen explaining regulatory policymaking and the behavior of regulated business firms, scholars have supplemented economic models by emphasizing the role of public-regarding entrepreneurial politics and of normative pressures on firms. This article explores the limits of such entrepreneurial politics and "social license" pressures by examining regulation of emissions from diesel powered trucks in the US. We find that the economic cost of obtaining the best available control technology - new model lower emissions engines - has: (i) limited the stringency and coerciveness of direct regulation of vehicle owners and operators; (ii) dwarfed the reach and effectiveness of the governmental programs that subsidize the purchase of new less polluting vehicles; and (iii) elevated the importance of each company's "economic license" - as opposed to its "social license" - in shaping its environmental performance. The prominence of this "regulatory compliance cost" variable in shaping both regulation and firm behavior, we conclude, is likely to recur in highly competitive markets, like trucking, that include many small firms that cannot readily either afford or pass on the cost of best available compliance technologies.
dc.publisherWiley-Blackwell
dc.sourceRegulation & Governance
dc.subjectKeywords: Air pollution; Compliance costs; Diesel emissions; Regulatory compliance; Regulatory policy-making
dc.titleCompliance costs, regulation, and environmental performance: Controlling truck emissions in the US
dc.typeJournal article
local.description.notesImported from ARIES
local.identifier.citationvolume2
dc.date.issued2008
local.identifier.absfor180111 - Environmental and Natural Resources Law
local.identifier.ariespublicationU4279067xPUB131
local.type.statusPublished Version
local.contributor.affiliationThornton, Dorothy, University of California
local.contributor.affiliationKagan, Robert A, University of California
local.contributor.affiliationGunningham, Neil, College of Medicine, Biology and Environment, ANU
local.description.embargo2037-12-31
local.bibliographicCitation.startpage275
local.bibliographicCitation.lastpage292
local.identifier.doi10.1111/j.1748-5991.2008.00043.x
dc.date.updated2016-02-24T10:49:30Z
local.identifier.scopusID2-s2.0-67649595029
local.identifier.thomsonID000259322500001
CollectionsANU Research Publications

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