Costly sanctions and the treatment of frequent violators in regulatory settings

A-Tier
Journal: Journal of Environmental Economics and Management
Year: 2022
Volume: 116
Issue: C

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Regulators typically treat frequent violators more harshly. When does such harsh treatment maximize overall compliance? We consider the role of two factors: responsiveness to penalties and costs of sanctions. A novel insight is that maintaining a credible threat of sanction against infrequent violators is relatively cheap because that threat seldom needs to be backed up. In a Clean Water Act application, the marginal sanction deters ten times as many violations when directed at infrequent violators. On net, this difference is due to a sanction cost effect, not because infrequent violators are marginally more responsive to the threat of punishment.

Technical Details

RePEc Handle
repec:eee:jeeman:v:116:y:2022:i:c:s0095069622000985
Journal Field
Environment
Author Count
2
Added to Database
2026-01-29