Chaudhuri, Sarbajit; Mukhopadhyay, Ujjaini - In: Journal of Economic Integration 21 (2006), pp. 363-378
sector is made to pay a pollution emission tax for any pollution level higher than the permissible level that is determined … by the regulatory authority. Since the informal manufacturing sector creates pollution, increase in the use of informal … sector output in the formal sector raises the level of pollution and widens the discrepancy between actual and permissible …