In previous posts I've argued that companies can be shamed into environmental compliance and that companies may argue for tougher environmental regulations if they can be viewed as the industry leader. Yesterday, the U.S. EPA announced it's list of firms that voluntarily exceed environmental performance standards.
Here's the upshot:
EPA today announced 71 facilities from 29 states and Puerto Rico as new or renewing members in a program rewarding facilities that voluntarily exceed regulatory requirements. The National Environmental Performance Track program rewards facilities that work with their communities, set three-year goals for continuous improvements in environmental performance and have internal systems in place to manage their environmental impacts. Only facilities with a record of sustained compliance with environmental requirements are eligible to participate in this program.
Being an economist, my instincts tell me to ask: What incentives do firms have to voluntarily exceed regulatory requirements? Here's what the EPA says are the incentives:
Recognition - How does PT publicize member achievements? Find out about opportunities for increased recognition of member successes.
Networking - Interested in sharing information with other organizations? Find out ways to exchange information and create a "learning network" for members.
Low Priority for Routine Inspection - Want to save time and money with fewer inspections? Read about this exclusive incentive for Performance Track members.
Regulatory and Administrative Incentives - What incentives are available or planned? Read about regulatory and administrative policies and proposals beneficial to members.
Green Investing - Read about investment research advisory firms that consider membership in Performance Track an important factor in assessing a company’s environmental performance, management team, and value to shareholders.
Ah hah! Recognition, information exchange, fewer inspections, regulatory incentives (for example "EPA will give preference to Performance Track members in developing flexible air permits that will reduce permitting costs and uncertainty.") and improved value to shareholders. Could it be that these environmentally friendly, or conscious or ...whatever companies are really just profit maximizers? Environmental improvements beyond current regulations and increased profits...I love irony.
