This paper explores the effects of effluent regulatory activity in the Ontarian pulp and paper industry. The model uses instrumental variables to distinguish between that correlation between emission limits and emissions coming from regulatory capture and that coming from true influence on the...

Economists have greatly criticized regulations that impose uniform environmental standards. Such a critic ignores that the implementation of the standards may vary significantly across plants, thus giving rise in fact to non-uniform standards. The purpose of this paper is to analyze the...