Formal and Informal Regulation of Industrial Pollution: Comparative Evidence from Indonesia and the United States
AbstractEconomic theory and recent empirical work suggest that when formal regulation of pollution is absent or less than 100 percent effective, affected communities are often able to negotiate abatement from plants in their vicinity through "informal regulation. Using a model of equilibrium pollution, this article confirms the existence of significant informal regulation for unregulated pollutants in both Indonesia and the United States as well as for regulated pollutants in the United States. Combining plant-level data with community data in both countries, regressions reveal that even after controlling for traditional economic variables such as output levels and input prices as well as for plant characteristics such as industrial sector and age, the per capita income of affected communities significantly affects pollution intensities. Higher-income communities win significantly lower emissions in both countries and for both unregulated and regulated pollutants in the United States, presumably because income affects both preferences for environmental quality and the ability to bring pressure on polluting factories. Copyright 1997 by Oxford University Press.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by World Bank Group in its journal World Bank Economic Review.
Volume (Year): 11 (1997)
Issue (Month): 3 (September)
Contact details of provider:
Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Phone: (202) 477-1234
Fax: 01865 267 985
Web page: http://wber.oxfordjournals.org/
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Heyes, Anthony & Kapur, Sandeep, 2012.
"Community pressure for green behavior,"
Journal of Environmental Economics and Management,
Elsevier, vol. 64(3), pages 427-441.
- Hua Wang & Ming Chen, 1999. "How the Chinese system of charges and subsidies affects pollution control efforts by China's top industrial polluters," Policy Research Working Paper Series 2198, The World Bank.
- Kathuria, Vinish, 2007. "Informal regulation of pollution in a developing country: Evidence from India," Ecological Economics, Elsevier, vol. 63(2-3), pages 403-417, August.
- Gangadharan, Lata, 2006.
"Environmental compliance by firms in the manufacturing sector in Mexico,"
Elsevier, vol. 59(4), pages 477-486, October.
- Lata Gangadharan, 2003. "Environmental Compliance by Firms in the Manufacturing Sector in Mexico," Department of Economics - Working Papers Series 881, The University of Melbourne.
- Hua Wang, 2000. "Pollution charges, community pressure, and abatement cost of industrial pollution in China," Policy Research Working Paper Series 2337, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.