Report, 2014
Violation of environmental regulations as a disinvestment in social capital
Gren, Ing-Marie; Andersson Franko, Mikael; Holstein, FredrikAbstract
This paper developed a simple dynamic model in order to analyse the impact of social capital on violation of environmental regulations. Two main channels of influence were identified; through informal enforcement of regulations and through effects on costs from disinvestment in social capital caused by violation. The model was tested using survey data on enforcement and violation of command and control regulations at municipalities and counties in Sweden. Four different measures on the social capital variable were used; general trust, trust in local and national governments, and organizational activity. Count data models were used for estimating the explanatory power of these variables in relation to inspection frequency and control variables of community characteristics. Statistically best results were obtained for organizational activity for all firm categories. The results showed that both the level of this social capital measure and its growth over time curb violation.Keywords
social capital; violation of environmental regulations; count data model; SwedenPublished in
Working Paper Series / Swedish University of Agricultural Sciences, Department of Economics2014, number: 2014:04
Publisher: Department of Economics, Swedish University of Agricultural Sciences
Authors' information
Swedish University of Agricultural Sciences, Department of Economics
Andersson Franko, Mikael
Swedish University of Agricultural Sciences, Department of Economics
Holstein, Fredrik
Swedish University of Agricultural Sciences, Department of Economics
UKÄ Subject classification
Economics
URI (permanent link to this page)
https://res.slu.se/id/publ/52668