Perceptions of and Responses to Environmental Economic Incentive Programs: An Industry Comparison for Small and Medium-Sized Companies

State and federal regulators have turned to economic incentives, such as toxic use fees, as a means of encouraging pollution prevention. This paper examines ho>r regulatory policies can influence environmental policy of small to medium sized firms in two particular industries. Environmental managers were surveyed in order to describe responses to and perceptions of the various types of regulatory policies that can be used to help eliminate or control toxic emissions. Not surprisingly, firms are most concerned with compliance with traditional command and control regulations. However, these businesses also indicated that some economic incentive programs would provide motivation to reduce toxic emissions. Implications for small and medium-sized operations are discussed