Scandinavian Working Papers in Economics

Working Paper Series,
Swedish University of Agricultural Sciences, Department Economics

No 2013:3: Violation of environmental regulations in Sweden: Economic motives, environmental attitudes, and social capital

Fredrik Holstein () and Ing-Marie Gren ()
Additional contact information
Fredrik Holstein: Department of Economics, Swedish University of Agricultural Sciences, Postal: Box 7013, Swedish University of Agricultural Sciences, SE-750 07 Uppsala, Sweden
Ing-Marie Gren: Department of Economics, Swedish University of Agricultural Sciences, Postal: Box 7013, Swedish University of Agricultural Sciences, SE-750 07 Uppsala, Sweden

Abstract: This paper tests the explanatory power of traditional enforcement instruments, environmental attitudes and abundance of social capital for violation of environmental regulations in Sweden. A count data model is used on a panel data set obtained from a survey to inspectors at the local and regional jurisdictions in Sweden. Regressions analyses are carried out for all firms but also for different firm categories depending on environmental impacts. The results indicate that traditional enforcement weapons, measured as number of inspection and a formal inspection style, curb violation by all types of firm categories. On the other hand, significant results are that environmental attitudes and abundance of social capital deter violation by large firms, but have no impact on violation by firms with minor environmental impacts.

Keywords: environmental regulations; violation; economic motives; environmental attitudes; social capital; heterogeneous firms; count data model; Sweden

JEL-codes: K33; K42; Q58

28 pages, March 27, 2013

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http://pub.epsilon.slu.se/9473/ PDF-file 

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