Lai, Ching-Chong; Yang, Chih-Yu; Chang, Juin-Jen - In: International Tax and Public Finance 10 (2003) 1, pp. 63-75
The evidence suggests that a surprisingly large number of firms comply with pollution standards even though expected penalties for non-compliance are quite low. This paper establishes an environmental social norm model that embodies collective environmental actions among firms. It provides a...