WASHINGTON - A business with a green-oriented boss is more likely to “over-comply” with environmental regulations if it believes in protecting the environment and that it makes financial sense in the long term.

The study examined why some firms violate environmental regulatory standards while others exceed them. It used data from a survey of 689 businesses in Oregon.

JunJie Wu, professor of economics at Oregon State University (OSU), who authored the study, said the results could be useful to policy makers when developing strategies to reduce environmental violations and encourage firms to do more than regulations require.

“The results suggest that a narrow strategy to promote environmental over-compliance may not fare well,” Wu said.

“For example, offering technical and financial assistance to reduce compliance costs may be offset if these policies reduce competitive pressures. It’s apparent that policy makers must avoid a one-size-fits-all approach and be innovative when designing environmental policies.”

Upper management’s environmental values were one of the leading factors affecting a firm’s decision about whether to over-comply with environmental standards.

Pressures from consumers, investors and interest groups have no statistically significant impact on a firm’s decision to violate or comply with environmental regulations.

However, facilities that make products that are sold directly to consumers or offer services directly to them are less likely to violate the regulations. Competitive market forces are significant factors in deterring environmental violations.

These results were published online in the Journal of Environmental Management.