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Firms’ Private Action Towards Environmental Quality: Where Does Regulation Stand for Non-Adopters of Environment Management Practices?

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  • Jayasinghe-Mudalige, U.K
  • Udugama, M.

Abstract

This study examines the effects of regulatory framework and legal system on the private action towards environmental quality among food processing firms in Sri Lanka. An Environment Regulation Responsiveness Index, reflecting compliance to solid waste management practices, was used as the measure of firms perception on environment regulation. The results highlight that compliance by the majority of firms was relatively low, especially among the small scale firms, suggesting that the decision maker on environment quality did not consider government regulation as an impotant factor to act on the environment. This calls for a critical revision and adjustments to the policy on environmental quality management both at the national and provincial level in order to promote voluntary action by firms.

Suggested Citation

  • Jayasinghe-Mudalige, U.K & Udugama, M., 2010. "Firms’ Private Action Towards Environmental Quality: Where Does Regulation Stand for Non-Adopters of Environment Management Practices?," Sri Lankan Journal of Agricultural Economics, Sri Lanka Agricultural Economics Association (SAEA), vol. 12, pages 1-12.
    • Handle: RePEc:ags:saeasj:205974
    DOI: 10.22004/ag.econ.205974
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    References listed on IDEAS

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    3. Pargal, Sheoli & Wheeler, David, 1996. "Informal Regulation of Industrial Pollution in Developing Countries: Evidence from Indonesia," Journal of Political Economy, University of Chicago Press, vol. 104(6), pages 1314-1327, December.
    4. George J. Stigler, 1971. "The Theory of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 3-21, Spring.
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