Small-Scale Industry, Environmental Regulation, and Poverty: The Case of Brazil

Posted: 29 Feb 2008

See all articles by Rajshri Jayaraman

Rajshri Jayaraman

University of Munich and CESifo

r F. Lanjouw

affiliation not provided to SSRN

Date Written: 2004

Abstract

Governments and international development agencies have intensified efforts to promote small-scale enterprises as an engine of propoor growth. In Brazil, however, small-scale industries may also be responsible for the bulk of air pollution emissions. Although employees of polluting small-scale industries in Brazil are not disproportionately poor, simulations suggest that stringent environmental regulation resulting in widespread closures of pollution-intensive small-scale industries would result in a nonnegligible increase in poverty among employees of these firms. The results suggest that the enthusiasm for small-scale enterprises needs to be tempered by awareness of the potential environmental costs imposed by this sector.

Suggested Citation

Jayaraman, Rajshri and Lanjouw, r F., Small-Scale Industry, Environmental Regulation, and Poverty: The Case of Brazil ( 2004). The World Bank Economic Review, Vol. 18, Issue 3, pp. 443-464, 2004, Available at SSRN: https://ssrn.com/abstract=916886

Rajshri Jayaraman (Contact Author)

University of Munich and CESifo ( email )

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Munich, 80539
Germany

HOME PAGE: http://www.lrz-muenchen.de/~ces/raji.htm

R F. Lanjouw

affiliation not provided to SSRN

No Address Available

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