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- Title
The benefits and costs of informal sector pollution control: Mexican brick kilnsWe are grateful to the Tinker Foundation for financial support; Lisa Crooks, Andres Lerner, and Alejandra Palma for excellent research assistance; Francisco Alfaro, Charles Bruce, Bob Currey, Anders Johnson, Antonio Lara, Wen-Whai Li, Robert Marquez, Jesus Reynoso, Carlos Rincon, Allyson Siwik, Gerardo Tarin, Victor Valenzuela, Adrián Vázquez, and Rebecca Wong for help with field research and data collection; and Alan Krupnick, the editor, and three anonymous referees for helpful comments and suggestions. Remaining errors are our own.
- Authors
ALLEN BLACKMAN; JHIH-SHYANG SHIH; DAVID EVANS; MICHAEL BATZ; STEPHEN NEWBOLD; JOSEPH COOK
- Abstract
In developing countries, the rapid proliferation of informal firms – low-technology unlicensed micro-enterprises – is having significant environmental impacts. Yet environmental management authorities typically ignore such firms. This paper estimates the annual net benefits (benefits minus costs) of controlling particulate emissions from a collection of informal brick kilns in Ciudad Juárez, Mexico and from two of the city's leading formal industrial polluters. We find that the annual net benefits of controlling brick kiln emissions are substantial – in the tens of millions of dollars – and exceed those for the two formal industrial facilities by a significant margin. These results suggest that, in some cases, the conventional allocation of pollution control resources across formal and informal polluters may be suboptimal.
- Subjects
CIUDAD Juarez (Mexico); MEXICO; CORPORATE finance; ENVIRONMENTAL management; EMISSIONS trading; EMISSIONS (Air pollution)
- Publication
Environment & Development Economics, 2006, Vol 11, Issue 5, p603
- ISSN
1355-770X
- Publication type
Article
- DOI
10.1017/S1355770X06003159