Industrial plants face pressure to abate water pollution from many sources, national and local, through formal government regulation and through more informal pressure from consumer groups and concern for the firm's reputation. Formal regulation tends to reflect the bargaining power of local...

The cost of complying with environmental regulations has been cited as a major burden on businesses. Is it enough of a burden to influence where businesses locate new plants, which are not restricted to their choice of location? The authors examine a unique establishment level dataset to find...

The costs attributable to complying with environmental regulation are not as important as other determinants of where Indian businesses locate new plants. The level of existing business activity overwhelms all other factors affecting location decisions. The cost of complying with environmental...