Beyond the Disaster Zone: How Disruptive Climate Events Shape EPA Oversight and Firm Behavior

Disruptive climate events impact the EPA's monitoring activities and firm behavior. After major hurricanes, EPA regulators increase monitoring efforts, including more inspections at facilities outside the disaster zone. This effect diminishes over time and is stronger for regulators closer to the disaster. The increased monitoring leads to more enforcement charges, reduced pollution, and greater environmental disclosure. However, affected firms shift pollution to facilities overseen by unaffected EPA offices.