Local regulatory anticipation and GHG emissions
Stricter regulatory scrutiny of one firm makes nearby non-targeted peers cut GHG emissions by about 7%, more so for higher-risk firms and closer neighbours.
Summary
Using US facility-level GHG data, the paper shows that when a county peer faces heightened oversight, non-targeted firms reduce emissions. The effect is stronger for firms at higher risk of environmental penalties and declines with distance from the scrutinised peer. Managers should monitor local regulatory activity and peer behaviour. [Open access — summary based on the published abstract.]
Editor's opinion
Narrow regulatory-spillover econometrics paper, not a firm-strategy lever.
Key concepts
regulatory anticipation · spillover · GHG emissions · local peers