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| Author: | Ivanova, K. |
| Title: | Corruption and air pollution in Europe |
| Journal: | Oxford Economic Papers
2010 : JAN, VOL 63:1 p. 49-70 |
| Index terms: | international relations environmental economics regulations Europe |
| Language: | eng |
| Abstract: | This paper studies how the effectiveness of regulatory framework affects the levels of sulphur emissions in the case where, to reduce its emission tax payments, a polluting company may under-report the level of emissions, taking the risk of being audited and fined. A model to explain how changes in regulatory framework (e.g., audit effectiveness) and transboundary spillovers affecting both actual and reported emissions is built up. Then the theoretical predictions using data for 39 European countries from 1999 to 2003 are sampled and inferences about actual emission levels are made. The empirical analysis supports the predictions with significant deductions for the interpretation of pollution data reported to international monitoring agencies. Countries having effective regulation are likely to have relatively high reported sulphur emissions. However, this should not automatically be interpreted as poor environmental performance, as their actual pollution levels are likely to be lower than in countries with less effective regulation. |
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