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Citation Information

Type Journal Article - World Bank Economic Review
Title Small-scale industry, environmental regulation, and poverty: the case of Brazil
Volume 18
Issue 3
Publication (Day/Month/Year) 2004
Page numbers 443-4
URL http://econpapers.repec.org/RePEc:oup:wbecrv:v:18:y:2004:i:3:p:443-464
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. Copyright 2004, Oxford University Press.

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