regulated due to its historically large contribution to air and water pollution. Our paper contributes to the broader empirical … and enforcement. Our key findings are: (1) prudential regulation limits expansion of plants with high initial pollution …

This paper proposes a strategic model of pollution control. A firm, representative of the productive sector of a … the level of pollutants' emissions, the firm increases the level of pollution. The government of the country aims at … minimizing the social costs due to the pollution, and introduces regulatory constraints on the emissions' level, which then …