Exploring new ways of assessing the effect of regulation on environmental management

Studies indicate that while a variety of factors positively influence voluntary environmental management, regulatory pressures are among the most important. However, most research examines samples representing large manufacturers or single industries, essentially assuming a level of regulatory constraint. Using a sample of heterogeneous facilities, this study finds that facilities can be classified according to the level of regulatory constraint, and that group membership impacts the choice of environmental management strategy when assessed within a utility maximization framework. More extensively regulated facilities implement more individual environmental management practices, but participate in fewer formal voluntary environmental programs (VEPs), compared to other facilities.