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Abstract:\nThe present paper investigates effects of regulatory inspections on compliance and emissions of\nenergy intensive manufacturing plants in Norway. The regression analysis shows that increased\nprobability of inspection reduces the probability of violation. This is in line with previous studies, and\nmay appear as an encouraging evaluation of the practiced regulatory enforcement policy. However,\nthe direct environmental impact of the enforcement policy is more dubious: Regression analyses\nreveal a positive relationship between the probability of an inspection and emissions. It appears\npuzzeling that increased probability of inspection can yield both reduced probability of violation and\nhigher emissions. The possibility that such a puzzle evolves from incentives inherent in the practiced\nregulatory policy is discussed.
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