| We analyze factors in states' decisions to switch their approaches to hazardous waste liability policy from negligence standards to policies based on strict liability. Many, but not all, states have switched in recent years. We explain differences in the timing of states' adoption of strict liability into their "mini-superfund" programs using data on states' industrial activities, environmental programs, wealth and education, and political orientation. We test implications of a theoretical model in which states adopt the liability regime (strict versus negligence-based liability) that they see as having greater net benefits. We test this model by estimating a profit equation of the presence or absence of strict liability in a state hazardous waste cleanup... |
