While economic and contractual incentives encourage firms to respond to environmental issues, additional contributing factors also provide incentives for them to deal with corporate environmental issues. That is, formal regulation (government monitoring and enforcement) can promote firms’...

countries, there is a large variation in the environmental performance and compliance of firms. Thus, there may be incentives apart from formal regulation to which firms respond; for instance, the influence of “Capital Markets”. Indeed, capital markets are considered to be one of the possible...

In Chile, like in other developing countries, many plants avoid complying with environmental regulations because monitoring and enforcement are infrequent. On the other hand, some plants overcomply because their abatement decisions are strongly affected by factors other than formal regulation....