1. Introduction -- 2. The purpose of a project analysis -- 3. Types of analysis -- 4. Efficiency -- 5. Utility -- 6. Social welfare -- 7. Equal welfare weights -- 8. Benefits measured in environmental units -- 9. Disagreement -- 10. Willingness to pay for the social good -- 11. The main message...

It has often been claimed that firms’ compliance to environmental regulations is higher than predicted by standard theory, a result labeled the “Harrington paradox” in the literature. Enforcement data from Norway presented here appears, at first glance, to confirm this “stylized fact”:...