Many public policies for hazardous waste raise the costs of legal disp
osal. Concerned about substitution of illegal disposal, economists hav
e instead recommended policies that reward desirable waste management
alternatives, :This article studies the empirical determinants of ille
gal disposal as reported to the U.S. Emergency Response Notification S
ystem (ERNS). It analyzes the frequency of used oil dumping using coun
t-data models. The results suggest that dumping is sensitive to the co
st of legal waste management options, including disposal and reuse, an
d to the threat of enforcement. In particular, state policies that res
trict legal disposal cause substantial substitution of illegal dumping
.