regulation leaves a gap between actual and locally preferred environmental quality. They use plant-level data from Indonesia and … the United States - countries that are very different, both socioeconomically and in terms of pollution regulation - test … a model of equilibrium pollution under informal regulation.Their results suggest three common elements across countries …

The pollution intensity o ... …

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 …