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Clean Technological Change in Developing-Country Industrial Clusters: Mexican Leather Tanning

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  • Blackman, Allen

    ()
    (Resources for the Future)

  • Kildegaard, Arne

Abstract

In many cities in developing countries, clusters of small and medium enterprises create severe pollution problems. Because conventional regulatory approaches are typically ineffective in such situations, policy responses have increasingly focused on promoting voluntary clean technological change. Yet the data and analysis needed to guide such efforts are scarce. This paper uses original firmlevel survey data on a cluster of small- and medium-scale leather tanneries in León, Guanajuato— Mexico’s leather capital—to econometrically identify the factors that drive the adoption of three clean tanning technologies. Using a multivariate probit model to estimate a system of seemingly unrelated regressions, we find—in contrast to conventional wisdom—that neither firm size nor regulatory pressure is correlated with adoption. Rather, the drivers of adoption are the firm’s human capital and stock of technical information, the same factors that explain conventional productivity-enhancing technological change. We also find that private-sector trade associations and input suppliers are important sources of technical information about clean technologies.

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Bibliographic Info

Paper provided by Resources For the Future in its series Discussion Papers with number dp-03-12-rev.

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Date of creation: 01 Apr 2003
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Handle: RePEc:rff:dpaper:dp-03-12-rev

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Keywords: clean technology; developing country; small and medium enterprises; Mexico; multivariate probit;

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References

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  1. Blackman, Allen & Shih, Jhih-Shyang & Cook, Joseph & Newbold, Stephen, 2000. "The Benefits and Costs of Informal Sector Pollution Control: Mexican Brick Kilns," Discussion Papers dp-00-46, Resources For the Future.
  2. Feder, Gershon & Lau, Lawrence J. & Lin, Justin Y. & Xiaopeng Luo, 1991. "Credit's effect on productivity in Chinese agriculture : a microeconomic model of disequilibrium," Policy Research Working Paper Series 571, The World Bank.
  3. JunJie Wu & Bruce A. Babcock & P. G. Lakshminarayan, 1996. "Choice of Tillage, Rotation, and Soil Testing Practices: Economic and Environmental Implications, The," Center for Agricultural and Rural Development (CARD) Publications 96-wp161, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  4. JunJie Wu & Bruce A. Babcock, 1998. "The Choice of Tillage, Rotation, and Soil Testing Practices: Economic and Environmental Implications," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 494-511.
  5. Stavins, Robert & Jaffe, Adam & Newell, Richard, 2000. "Technological Change and the Environment," Working Paper Series rwp00-002, Harvard University, John F. Kennedy School of Government.
  6. Wozniak, Gregory D, 1984. "The Adoption of Interrelated Innovations: A Human Capital Approach," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 70-79, February.
  7. Ramirez, Octavio A. & Schultz, Steven D., 2000. "Poisson Count Models To Explain The Adoption Of Agricultural And Natural Resource Management Technologies By Small Farmers In Central American Countries," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 32(01), April.
  8. Suzi Kerr & Richard G. Newell, 2003. "Policy-Induced Technology Adoption: Evidence from the U.S. Lead Phasedown," Journal of Industrial Economics, Wiley Blackwell, vol. 51(3), pages 317-343, 09.
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Cited by:
  1. Blackman, Allen, 2009. "Alternative Pollution Control Policies in Developing Countries: Informal, Informational, and Voluntary," Discussion Papers dp-09-14-efd, Resources For the Future.
  2. Boris E. Bravo-Ureta & Horacio Cocchi & Daniel Solís, 2006. "Output Diversification among Small-Scale Hillside Farmers in El Salvador," IDB Publications 25778, Inter-American Development Bank.
  3. Blackman, Allen & Sisto, Nicholas, 2005. "Muddling Through while Environmental Regulatory Capacity Evolves: What Role for Voluntary Agreements?," Discussion Papers dp-05-16, Resources For the Future.
  4. Jing Lan & Alistair Munro, 2012. "Environmental Compliance and Human Capital: Evidence from Chinese Industrial Firms," GRIPS Discussion Papers 12-05, National Graduate Institute for Policy Studies.
  5. David Popp & Richard G. Newell & Adam B. Jaffe, 2009. "Energy, the Environment, and Technological Change," NBER Working Papers 14832, National Bureau of Economic Research, Inc.

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