Competitive vs. random audit mechanisms in environmental regulation: emissions, self-reporting, and the role of peer information

In a simplifying analytical framework with endogenous levels of actual and self-reported emissions, we consolidate the existing literature into three main hypotheses about the relative merits, for a resource-constrained regulator, of random (RAM) and competitive (CAM) audit mechanisms in the presenc...

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Bibliographic Details
Main Authors: Goeschl, Timo (Author) , Oestreich, Marcel (Author) , Soldà, Alice (Author)
Format: Book/Monograph Working Paper
Language:English
Published: Heidelberg Universitätsbibliothek Heidelberg [2021]
Edition:This version: 11 Mrz. 2021
Series:AWI discussion paper series no. 699 (March 2021)
In: AWI discussion paper series (no. 699 (March 2021))

DOI:10.11588/heidok.00029474
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Online Access:Resolving-System, kostenfrei: https://nbn-resolving.de/urn:nbn:de:bsz:16-heidok-294749
Resolving-System, kostenfrei: http://dx.doi.org/10.11588/heidok.00029474
Verlag, kostenfrei, Volltext: http://www.ub.uni-heidelberg.de/archiv/29474
Resolving-System, kostenfrei: http://hdl.handle.net/10419/235022
Resolving-System: https://nbn-resolving.org/urn:nbn:de:bsz:16-heidok-294749
Langzeitarchivierung Nationalbibliothek: https://d-nb.info/122919794X/34
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Author Notes:Timo Goeschl, Marcel Oestreich, Alice Soldà
Description
Summary:In a simplifying analytical framework with endogenous levels of actual and self-reported emissions, we consolidate the existing literature into three main hypotheses about the relative merits, for a resource-constrained regulator, of random (RAM) and competitive (CAM) audit mechanisms in the presence or absence of peer information about actual emissions. Testing the three hypotheses in a quasi-laboratory experiment (N = 131), we find supportive evidence that CAM always induce more truthful reporting than RAM. Moreover, we provide the empirical validation of the theoretical prediction that CAM can succeed in aligning actual emissions more closely with the social optimum in the presence of peer information when RAM cannot. Behavioral mechanisms prevent reaching the first-best outcome.
Physical Description:Online Resource
DOI:10.11588/heidok.00029474