Prague Economic Papers 2016, 25(6):671-685 | DOI: 10.18267/j.pep.583

Evaluating the Regulatory Burden: Pollutant Release and Transfer Reporting Costs

Eliška Vejchodská1, Lenka Slavíková2, Vítězslav Malý3
1 University of Economics, Prague, Czech Republic (vejchode@vse.cz); Charles University in Prague, Faculty of Humanities, Czech Republic (eliska.vejchodska@fhs.cuni.cz)
2 Faculty of Social and Economic Studies at J. E. Purkyně University in Ústí nad Labem, Ústí nad Labem, Czech Republic (lenka.slavikova@ujep.cz)
3 University of Economics, Prague, Czech Republic (vitezslav.maly@vse.cz)

Environmental information disclosure instruments inevitably also carry information costs. It is important to pay attention to these costs because of the competitiveness issues connected with the regulatory burden of the private sector or the overall cost-effectiveness of different types of environmental regulation from the public sector point of view. We undertake an ex-post analysis to quantify and analyse reporting costs of private sector induced by the European Pollutant Release and Transfer Register (E-PRTR). We focus on the case of the Czech Republic. The average annual reporting costs, additional to other reporting duties, are € 365 per facility. The Czech PRTR comprises 8 times more facilities than required by the European law, and thereby increases correspondingly the total reporting costs. The best predictor variable of the costs is the need for measuring or calculating additional releases or transfers beyond the information requirements of other registers.

Keywords: reporting costs, information costs, PRTR, environmental information disclosure
JEL classification: L59, Q53, Q58

Prepublished online: May 20, 2016; Published: December 1, 2016  Show citation

ACS AIP APA ASA Harvard Chicago IEEE ISO690 MLA NLM Turabian Vancouver
Vejchodská, E., Slavíková, L., & Malý, V. (2016). Evaluating the Regulatory Burden: Pollutant Release and Transfer Reporting Costs. Prague Economic Papers25(6), 671-685. doi: 10.18267/j.pep.583
Download citation

References

  1. Bennett, F., Brewer, M., Shaw, J. (2009). Understanding the Compliance Costs of Benefits and Tax Credits. London: The Institute for Fiscal Studies. ISBN: 978-1-903274-62-0. Go to original source...
  2. Biglaiser, G., Horowitz, J. K. (1993). Pollution, Public Disclosure, and Firm Behavior. Journal of Regulatory Economics, 5(3), 303-315. DOI: 10.1007/BF01065956. Go to original source...
  3. Cañón-de-Francia, J., Garcés-Ayerbe, C., Ramírez-Alesón, M. (2008). Analysis of the Effectiveness of the First European Pollutant Emission Register (EPER). Ecological Economics, 67(1), 83-92. DOI: 10.1016/j.ecolecon.2007.11.016. Go to original source...
  4. Crain, W. M. (2005). The Impact of Regulatory Costs on Small Firms. US Small Business Administration, Office of Advocacy. Available at: http://archive.sba.gov/advo/research/rs264tot.pdf. Accessed 14 November 2011
  5. Dillman, D. A., Bowker, D. K. (2001). The Web Questionnaire Challenge to Survey Methodologists, in Batinic, B., Reips, U. D, Bosnjak, M., Werner, A., eds., Online Social Sciences. Seattle: Hogrefe & Huber. pp. 53-71.
  6. European Commission (1996). Environmental Impact Assessment in Europe. A Study on Costs and Benefits. Brussels: European Commission.
  7. Goulder, L. H. et al. (1999). The Cost-Effectiveness of Alternative Instruments for Environmental Protection in a Second-Best Setting. Journal of Public Economics, 72(3), 329-360. DOI: 10.1016/S0047-2727(98)00109-1. Go to original source...
  8. Groves, R. M. (2004). Survey Errors and Survey Costs. New York: John Wiley & Sons. ISBN 978-0-471-67851-9.
  9. Harrington, D. R. (2013). Effectiveness of State Pollution Prevention Programs and Policies. Contemporary Economic Policy, 31(2), 255-278. DOI: 10.1111/j.1465-7287.2011.00312.x. Go to original source...
  10. Jaffe, A. B. et al. (1995). Environmental Regulation and the Competitiveness of US Manufacturing: What Does the Evidence Tell Us? Journal of Economic Literature, pp. 132-163.
  11. Jaraitė-Kažukauskė, J., Kažukauskas, A. (2014). Do Transaction Costs Influence Firm Trading Behaviour in the European Emissions Trading System? Environmental and Resource Economics, pp. 1-31. DOI: 10.1007/s10640-014-9831-7. Go to original source...
  12. Jílková, J., Pavel, J., Vítek, L., Slavík, J. (2006). Poplatky k ochraně životního prostředí a jejich efektivnost. (Charges and Fees for Environmental Protections and Their Effectiveness). Prague: Eurolex Bohemia. ISBN 80-7379-002-5.
  13. Joshi, S. et al. (2001). Estimating the Hidden Costs of Environmental Regulation. The Accounting Review, 76(2), 171-198. DOI: 10.2308/accr.2001.76.2.171. Go to original source...
  14. Khanna, M., Quimio, W., Bojilova, D. (1998). Toxic Release Information: A Policy Tool for Environmental Protection. Journal of Environmental Economics and Management, 36, pp. 243-266. DOI: 10.1006/jeem.1998.1048. Go to original source...
  15. Krutilla, K., Krause, R. (2011). Transaction Costs and Environmental Policy: An Assessment Framework and Literature Review. International Review of Environmental and Resource Economics, 4(3-4), 261-354. DOI: 10.1561/101.00000035. Go to original source...
  16. McCann, L. (2013). Transaction Costs and Environmental Policy Design. Ecological Economics, 88, pp. 253-262. DOI: 10.1016/j.ecolecon.2012.12.012. Go to original source...
  17. Oberholzer-Gee, F., Mitsunari, M. (2006). Information Regulation: Do the Victims of Externalities Pay Attention? Journal of Regulatory Economics, 30(2), 141-158. DOI: 10.1007/s11149-006-0016-3. Go to original source...
  18. Olsson, U. (2005). Confidence Intervals for the Mean of a Log-Normal Distribution. Journal of Statistics Education, 13(1). [Retrieved 2014-1-28] Available at: www.amstat.org/publications/jse/v13n1/olsson.html Go to original source...
  19. Pizer W. A., Kopp, R. (2005). Calculating the Cost of Environmental Regulation. Handbook of Environmental Economics, 3, pp. 1307-1351. DOI: 10.1016/S1574-0099(05)03025-1. Go to original source...
  20. Portney, P. R. (1981). Macroeconomic Impacts of Federal Environmental Regulation. Natural Resources Journal, 21, pp. 459-488.
  21. R Core Team (2012). A Language and Environment for Statistical Computing. Vienna: R Foundation for Statistical Computing. [Retrieved 2013-9-10] Available at: http://www.R-project.org/
  22. Retief, F., Chabalala, B. (2009). The Cost of Environmental Impact Assessment (EIA) in South Africa. Journal of Environmental Assessment Policy and Management, 11(1), 51-68. DOI: 10.1142/S1464333209003257. Go to original source...
  23. Ryan, S. P. (2012). The Costs of Environmental Regulation in a Concentrated Industry. Econometrica, 80(3), 1019-1061. DOI: 10.3982/ECTA6750. Go to original source...
  24. Tietenberg, T. (1998). Disclosure Strategies for Pollution Control. Environmental and Resource Economics, 11(3-4), 587-602. DOI: 10.1023/A:1008291411492. Go to original source...
  25. Tran-Nam, B., Evans, C., Walpole, M. (2000). Tax Compliance Costs: Research Methodology and Empirical Evidence from Australia. National Tax Journal, 53(2), 229-252. DOI: 10.17310/ntj.2000.2.04. Go to original source...
  26. UNECE. Cost Guide for Implementation of the UNECE Protocol on Pollutant Release and Transfer Registers. [Retrieved 2011-10-21] Available at: http://www.unece.org/fileadmin/DAM/env/pp/prtr/docs/CostModel/Cost_guide_for_the_implementation_of_the_PRTR_Protocol-REV.pdf
  27. UNECE (2011). Cost Model for the Establishment of Pollutant Release and Transfer Registers. ECE/MP.PRTR/WG.1/2011/3. Geneva: United Nations. [Retrieved 2011-10-21] Available at: http://www.unece.org/fileadmin/DAM/env/pp/prtr/docs/2011/ece_mp.prtr_wg.1_2011_3_eng.pdf
  28. US Census Bureau (2008). Pollution Abatement Costs and Expenditures 2005. Washington: U.S. Government Printing Office.
  29. Vítek, L. (2012). Regulatory Impact Assessment in the Czech Republic. European Financial and Accounting Journal, 7(3-4), 63-78. Go to original source...

This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.