Table 2A. Benchmarking Simplified Methods for Measuring General Deterrence: A Quantitative Analysis of BOD Water Pollution Discharges in the Pulp and Paper Industry
Variable Description
Linear Regression with Fixed Effects
Linear Regression with Random Effects
Linear Regression with Conditional Random Effects
Fines 112 months ago on
another plant in same state Fines 112 months ago on
this plant
Season Indicator Variables Year Indicator Variables State Indicator Variables FacilitySpecific Fixed Effects

0.022** (4.22)

0.003
(0.22)
Yes Yes No Yes
*

0.023*** (4.23)

.001
(0.05)
Yes Yes Yes No

0.022*** (4.20)

0.003
(0.22)
Yes Yes Yes No
NOTES: Observations are by plant and month. The dependent variable is continuous BOD water pollution discharges as a percent of permitted levels. The key explanatory variables is a 0/1 fine indicator variable. This variable equals 1 if another facility in this industry in the same state received a fine in the last year. For comparability with the existing literature, reported coefficients on the key explanatory variables are coefficients (equal to marginal effects in these linear regressions). A superscript * indicates statistical significance at the 10% significance level. ** indicates statistical significance at the 5% significance level. *** indicates statistical significance at the 1% significance level.
Table 2B. Benchmarking Simplified Methods for Measuring General Deterrence: A Quantitative Analysis of TSS Water Pollution Discharges in the Pulp and Paper Industry
Variable Description
Linear Regression with Fixed Effects
Linear Regression with Random Effects
Linear Regression with Conditional Random Effects
Fines 112 months ago on
another plant in same state Fines 112 months ago on
This plant
Season Indicator Variables Year Indicator Variables State Indicator Variables FacilitySpecific Fixed Effects

0.018*** (3.64)

0.012
(0.95)
Yes Yes No Yes

0.018** (3.75)

0.007
(0.52)
Yes Yes Yes No
*

0.018*** (3.67)

0.012
(0.95)
Yes Yes Yes No
NOTES: Observations are by plant and month. The dependent variable is continuous TSS water pollution discharges as a percent of permitted levels. The key explanatory variables is a 0/1 fine indicator variable. This variable equals 1 if another facility in this industry in the same state received a fine in the last year. For comparability with the existing literature, reported coefficients on the key explanatory variables are coefficients (equal to marginal effects in these linear regressions). A superscript * indicates statistical significance at the 10% significance level. ** indicates statistical significance at the 5% significance level. *** indicates statistical significance at the 1% significance level. ** indicates statistical significance at the 5% significance level. *** indicates statistical significance at the 1% significance level.
23