A duration analysis of environmental alternative dispute resolution in Japan

The use of alternative dispute resolution (ADR) to solve environmental disputes is expected to increase in the near future. Therefore, it is important to evaluate the effectiveness of environmental ADR empirically. However, the majority of empirical literature of environmental ADR provides merely descriptive case studies. Using a large micro-level database from Japan, this paper identifies the characteristics of pollution disputes addressed by ADR and correlates those characteristics to the duration of disputes. Using the strike analysis for reference, we estimate the standard duration models of environmental ADR. The analyses demonstrate that pollution disputes involving health damage are resolved promptly. Air pollution problems affecting multiple households are also expeditiously resolved. Moreover, we find that representative actions prolong the settlement of environmental disputes.

Research Highlights► We study pollution disputes addressed by alternative dispute resolution empirically. ► The duration analysis is applied to a large micro-level database from Japan. ► We find that pollution disputes involving health damage are resolved promptly. ► We find that representative actions prolong the settlement of pollution disputes.