Illegal firm behaviour and environmental hazard: The case of waste disposal

This study provides an analysis of illegal waste disposal examining how and why it occurs, with a focus on illegal industrial dumping. Organizational resource dependency theory and the bad barrel theory are used as conceptual frameworks to highlight the reasons leading firms to engage in illegal waste disposal, influenced by the firm's operational environment and characteristics, and how firms make use of it. The effects of environmental resource dependency variables and micro variables in terms of the hazard level associated with illegal waste disposal were tested separately and jointly by means of logistic regressions. Environmental resource dependency is found to be a powerful driver of the behaviour of firms, both independently and combined with certain organizational factors, with an impact on the hazardousness of illegal waste disposal. The policy implications of the findings are discussed, and a number of suggestions for preventing illegal dumping are put forward.