Industry self-regulation of environmental compliance

This study examines the prospect for industry self-regulation of environmental compliance. Because recent years have seen a greening of industry along with budget cuts at state environmental agencies and the US EPA, many in government and academia are calling for a change in the way we have compelled compliance, arguing that industry can be coaxed toward voluntary compliance as effectively through incentives as through penalties. This study begins by examining the aim of environmental regulation through a review of compliance and enforcement theory. The prospects of using voluntary environmental initiatives and self-regulation as policy instruments are then evaluated through analysis of industry and government initiated programs as well as international experiences.; Case studies of four leading self-regulation programs---the chemical industry's Responsible Care program, Project XL, OSHA's Voluntary Protection Program, and EPA's StarTrack program---help draw conclusions about the use of self-regulation as a compliance tool. Each case study evaluates the history, elements and success of the program in light of recent scholarly discussion.; The results indicate that self-regulation has promise in assisting government to focus its resources on non-compliers while allowing responsible companies to regulate themselves with minimal agency oversight. Seven essential elements for a successful self-regulation program are identified: clear goals, government involvement, significant benefitsincentives, minimal complexity, legal standing, stakeholder involvement and a beyond-compliance component. A model self-regulation program is presented in the study utilizing these elements. The program goal should be to elicit compliance through participation in a program that is as inclusive as possible. Key program elements include annual regulatory compliance audits, third-party verification of compliance and ISO14001 certification. Benefits to industry include public recognition as a "star" company, violation amnesty for self-disclosed violations that do not damage the environment and agency inspections at a rate less than the average multimedia inspection rates. The key to this program is to minimize government oversight so that resources can be focused on poor performers.