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Study: Agencies Flout Environmental Rules More than Private Firms
By Charles S. Clark of the National Journal Group.
"Government-owned power plants, hospitals and water utilities fall
short in complying with federal environmental laws more often than
similar private-sector entities, an academic study found.
Publicly owned facilities are less likely to face fines or other
sanctions for violations than are those owned and run by private firms,
according to an examination of records of plants regulated under the
Clean Air Act and Safe Drinking Water Act from 2001-2011.
Published last month in the American Journal of Political Science, the study titled "When Governments Regulate Governments" also found that regulatory authorities are less vigorous in enforcing the rules when they are regulating other governments.
“The findings are significant but not surprising,” said co-author David Konisky of
the School of Public and Environmental Affairs at Indiana University.
He and co–author Manny Teodoro, associate professor of political science
at Texas A&M University, viewed records from more than 3,000 power
plants, 1,000 hospitals and 4,200 water utilities.
Their findings:
- Public power plants and hospitals were on average 9 percent
more likely to be out of compliance with Clean Air Act regulations and
20 percent more likely to have committed high-priority violations;
- Public water utilities had on average 14 percent more Safe Drinking
Water Act health violations and were 29 percent more likely to commit
monitoring violations;
- Public power plants and hospitals that violated the Clean Air Act
were 1 percent less likely than private-sector violators to receive a
punitive sanction and 20 percent less likely to be fined;
- Public water utilities that violated Safe Drinking Water Act
standards were 3 percent less likely than investor-owned utilities to
receive formal enforcement actions.
One reason for the disparity, the professors said, is that government
entities have “higher costs of complying with regulations because they
often must go through political processes to raise the money needed to
improve their facilities. And they may face pushback from customers or
taxpayers who object to higher rates and have the political power to
block them.”
Public entities also are able to delay or avoid paying fines when
penalties are assessed. “And officials with regulatory agencies may be
sympathetic to violations by public entities, because they understand
the difficulty of securing resources in the public sector,” the
academics concluded.
While some observers may take the findings as an argument for
privatizing regulated services, Konisky cautioned that privatization
comes with its own issues, “such as a loss of accountability and
over-spending for infrastructure,” he said. Privatization “could be a
solution, but it has to be put in context,” he added. Other approaches
could include providing stronger incentives and assistance to help
public agencies comply with regulations."
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