Do Disruptive Climate Events Affect Environmental Regulators’ Monitoring?

Abstract

We examine how experiences with disruptive climate events impact the Environmental Protection Agency’s (EPA) monitoring activities. Using a difference-in-differences research design and exogenous variation in the exposure of EPA regional offices to major hurricanes, we find that exposed EPA regulators increase their monitoring efforts for facilities in their jurisdiction that are not hit by the disasters. This increase is measured by both inspection frequency and length, and the effects are greater for regional offices located closer to the disaster zone. Moreover, the exposed regional offices are more likely to take enforcement actions against these non-exposed facilities. Our results are consistent with EPA regulators changing their perceived risks of regulated facilities following disruptive climate events and exerting more monitoring efforts. We also find that these non-exposed facilities release fewer toxic chemicals in response to the increased scrutiny. Our findings highlight the importance of regulators’ experiences in shaping their monitoring activities and the subsequent effects on the regulated entities.