Heterogeneous response to environmental enforcement: Unresponsive repeat violators?

Highlights

•   We study the impact of a type of information disclosure programme in Ireland.

•   We use matching methods with DiD estimations to identify plants’ behavioural response.

•   Inclusion in the NPS triggers a gradual reduction in violations.

•   But the incentives may not be enough to boost investment in pollution abatement.

Abstract

This paper examines the deterrence effects of a type of non-traditional environmental enforcement action on the behaviour of repeat violators in Ireland. Specifically, we analyse the impact of the quarterly public releases of National Priority Sites (NPS) lists, an information-disclosure program, between 2017 and 2022. We find that the publication of NPS lists effectively improves compliance among the worst environmental performers; however, these facilities fail to return to their pre-treatment baseline, suggesting that the resulting improvements are modest in magnitude. The results show that most of the reduction in violations stems from enhancements in administrative and operational procedures, rather than decreases in breaches of emission limit values. This suggests that the additional enforcement pressures created with this non-traditional enforcement tool may not provide sufficient incentives to boost investment in pollution abatement technologies. Nevertheless, the regulator gains leeway to re-prioritise the allocation of enforcement resources.