The article discusses whether it is beneficial for regulators to impose emissions taxes that firms try to avoid. The researchers found that in certain situations, it can be more cost-effective for regulators to allow some level of noncompliance by firms. This can help reduce monitoring efforts and costs, especially if the firm's emissions are linked to the monitoring strategy, the likelihood of punishment increases with the violation size, or the firm's manager is risk averse. The decision to allow noncompliance depends on balancing the benefits of reduced monitoring with the increased costs of sanctions and regulatory uncertainty.