DOES DECENTRALIZATION MATTER IN ENVIRONMENTAL-MANAGEMENT

Questionnaires from 39 state National Pollutant Discharge Elimination System (NPDES) agencies were analyzed using principal component analys is and multiple regression. Decentralized programs scored better in a fundamental indicator of efficiency (lower percentage of expired permi ts) and in the key effectiveness measure of unit-cost compliance achie ved. In no case did centralized states score significantly better than decentralized ones. These results indicated support for the theory th at superior local knowledge is the key mechanism. Case studies of five states suggested internal program adjustments may cause outcomes to c onverge towards efficiency and effectiveness, perhaps explaining the l arge number of variables showing no difference between centralized pro grams and decentralized ones.