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| Author: | Pargal, S. Wheeler, D. |
| Title: | Informal regulation of industrial pollution in developing countries: evidence from Indonesia |
| Journal: | Journal of Political Economy
1996 : DEC, VOL. 104:6, p. 1314-1327 |
| Index terms: | POLITICAL ECONOMY ECONOMICS INDONESIA |
| Language: | eng |
| 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 information regulation hypothesis. Under formal regulation, the government acts as an agent for the community in controlling industrial pollution. |
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