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State-Dependent Enf...
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Coria, Jessica,1979Gothenburg University,Göteborgs universitet,Institutionen för nationalekonomi med statistik, Enheten för miljöekonomi,Department of Economics, Environmental Economics Unit
(author)
State-Dependent Enforcement to Foster the Adoption of New Technologies
- Article/chapterEnglish2015
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2015-09-16
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Springer Science and Business Media LLC,2015
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LIBRIS-ID:oai:gup.ub.gu.se/223954
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https://gup.ub.gu.se/publication/223954URI
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https://doi.org/10.1007/s10640-015-9943-8DOI
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Subject category:ref swepub-contenttype
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Subject category:art swepub-publicationtype
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Harrington (J Public Econ 37:29–53, 1988) shows that a suitable strategy for regulators to make enforcement more efficient is to target surveillance resources according to past compliance records. Such scheme generates enforcement leverage as non-compliance triggers greater future scrutiny increasing the expected costs of non-compliance beyond the avoidance of immediate fines. In this paper, we propose an improved transition structure for the audit framework, in which targeting is based not only on firms’ past compliance record but also on adoption of environmentally superior technologies. We show that this transition structure would not only foster the adoption of new technology but also increase deterrence by changing the composition of firms in the industry toward an increased fraction of cleaner firms that pollute and violate less.
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Zhang, Xiao-Bing,1985
(author)
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Göteborgs universitetInstitutionen för nationalekonomi med statistik, Enheten för miljöekonomi
(creator_code:org_t)
Related titles
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In:Environmental and Resource Economics: Springer Science and Business Media LLC62:2, s. 359-3810924-64601573-1502
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