Can consumers enforce environmental regulations? The role of the market in hazardous waste compliance

We examine the U.S. hazardous waste management industry to assess the role that consumers play in encouraging environmental compliance. We first examine whether environmental performance affects consumer demand and find that noncompliance does decrease demand, at least in the short term. Next we consider whether market characteristics affect compliance behavior. While we do not find evidence that market size affects behavior, local competition does appear to increase compliance. However, as competition becomes less localized, it has a smaller effect. Finally, regardless of the pressures exerted by consumers to comply, commercial managers are less likely to be in compliance than on-site managers. Copyright Springer Science+Business Media, LLC 2007Commercial environmentalism, Compliance, Enforcement, Hazardous waste, Market size, Competition, Q28, K42, D21,

Voluntary development of environmental management systems: motivations and regulatory implications

Encouraging firms to develop voluntarily more comprehensive environmental management systems (EMSs) is touted as a policy tool to augment mandatory environmental regulations. Using a unique dataset of environmental management practices of Japanese manufacturers and controlling for self-selection bias in survey responses, we find that proxies for regulatory pressures and consumer pressures are the most important factors that motivate firms toward more comprehensive EMSs. Despite the oft-claimed “voluntary” nature of EMS development, our results show that the government may have a role to play in both directly and indirectly affecting EMS development by firms. Copyright Springer Science+Business Media, LLC 2007Environmental management, Japan, Pollution, Voluntary approaches, Q5, L5,