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Informal Regulation of Industrial Pollution in Developing Countries: Evidence from Indonesia

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  • Pargal, Sheoli
  • Wheeler, David

Abstract

When formal regulation is weak or absent, communities often use other channels to induce pollution abatement by local factories in a process of 'informal regulation.' The resulting 'pollution equilibrium' reflects the relative bargaining power of the community and the plant. This note uses Indonesian data from 1989-90 on plant-level organic water pollution to test the informal regulation hypothesis. Copyright 1996 by University of Chicago Press.

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  • 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.
  • Handle: RePEc:ucp:jpolec:v:104:y:1996:i:6:p:1314-27
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