Grantee Research Project Results
2003 Progress Report: Identifying Methods for Improving The Effectiveness of Audit Policies and Laws
EPA Grant Number: R829686Title: Identifying Methods for Improving The Effectiveness of Audit Policies and Laws
Investigators: Stretesky, Paul B.
Institution: Colorado State University
EPA Project Officer: Hahn, Intaek
Project Period: July 27, 2002 through July 27, 2004 (Extended to August 31, 2005)
Project Period Covered by this Report: July 27, 2002 through July 27, 2003
Project Amount: $139,173
RFA: Corporate Environmental Behavior: Examining the Effectiveness of Government Interventions and Voluntary Initiatives (2001) RFA Text | Recipients Lists
Research Category: Environmental Justice
Objective:
Environmental audit policies and laws waive penalties, reduce penalties, or grant privilege against disclosure of self-audit information in administrative or judicial proceedings when regulated entities voluntarily discover, promptly disclose, and correct environmental violations. Recent research suggests that audit privilege and immunity legislation and penalty mitigation policies can be implemented more effectively and efficiently. To improve audit laws and policies, regulatory agencies need information on factors associated with the disclosure of environmental violations. The main objective of the proposed study is to determine if variables that measure sanction certainty, sanction severity, and compliance assistance are associated with the odds of disclosing a violation under the U.S. Environmental Protection Agency's (EPA) Audit/Self-Policing Policy. If this research finds that multiple factors are related to the odds of disclosure, the study design will be able to identify the one that is most important in determining disclosure.
Progress Summary:
A list of companies that violated environmental laws and reported those violations under the Audit Policy was obtained from EPA's Office of Enforcement and Compliance Assurance. This list consisted of a total of 642 companies that reported a violation under the Audit Policy during fiscal year (FY) 1999 and FY 2000. A total of 663 control companies was randomly selected from a sampling frame of 8,394 companies that did not use the Audit Policy but had administrative or judicial cases initiated against them by the EPA during FY 1999 and FY 2000. The sampling frame was constructed using the Integrated Data for Enforcement Analysis (IDEA) system. Each company's facilities were identified, and standard industrial classification (SIC) codes for facility operations were determined. Location and SIC information are included in the dataset.
Future Activities:
To meet the project objectives, information obtained from the IDEA system will be used to construct variables that measure the following: (1) the rate of inspections at company facilities; (2) the rate and type of past enforcement actions taken against the company; (3) the rate and type of enforcement actions taken at facilities that are geographically proximate to company facilities; and (4) the rate and type of enforcement actions taken against companies in the same industry. Data obtained from the U.S. EPA and the U.S. EPA's Office of Compliance and Enforcement will be used to create company variables that determine the extent of compliance assistance efforts, such as mass mailings and company requests for information. Control variables that measure company and industry economic performance will be obtained from Dun and Bradstreet, Lexis/Nexis, Reference USA, Census of Manufacturers, and Moody's Industrial Manual.
Journal Articles:
No journal articles submitted with this report: View all 3 publications for this projectSupplemental Keywords:
public policy, decision-making, cost-benefit, sociological, sustainable industry, sustainable business, corporate performance, economics, business, social science, audit policies, compliance assistance, corporate compliance, corporate environmental behavior, corporate environmental policy, enforcement impact, enforcement strategy, voluntary compliance, environmental behavior, environmental compliance determinants, environmental law, government intervention, information dissemination., RFA, Scientific Discipline, Sustainable Industry/Business, Corporate Performance, Economics and Business, Environmental Law, Social Science, compliance assistance, corporate environmental policy, enforcement strategy, policy making, corporate compliance, government intervention, environmental compliance determinants, information dissemination, audit policies, enforcement impact, environmental behaviorProgress and Final Reports:
Original AbstractThe perspectives, information and conclusions conveyed in research project abstracts, progress reports, final reports, journal abstracts and journal publications convey the viewpoints of the principal investigator and may not represent the views and policies of ORD and EPA. Conclusions drawn by the principal investigators have not been reviewed by the Agency.