Self-reporting and environmental protection: an experimental investigation (2008-2010)

Adequate monitoring and enforcement is necessary to achieve compliance with environmental regulations. Due to a lack of resources, many regulations require that firms undertake their own monitoring and then report the results to the enforcement authority. Voluntary disclosure or self-reporting of violations is encouraged by a reward of reduced penalties. This project will use a series of laboratory experiments to explore aspects of the design of self-reporting policies. A key focus will be the impact of self-reporting on the level of compliance and on the frequency and truthfulness of self-reports. Implications for other types of regulatory enforcement will also be explored.