TY - JOUR

T1 - Effect of environmental regulation on a firm's performance

T2 - Evidence from a policy experiment

AU - Chakraborty, Pavel

PY - 2016/6/11

Y1 - 2016/6/11

N2 - Using a policy experiment that involved the imposition of a technical regulation by the Ministry of Environment and Forests on the Indian leather and textile industries in 1997, firm-level data set is used to study trade, adaptation, innovation and survival effects and how they vary by firm size. The study finds that (i) regulation led to significant gains from trade through the use of improved raw materials and technological change, especially for the big firms, (ii) use of high-quality raw materials and productivity levels significantly account for the exit decision of a firm, and (iii) regulation significantly affects the exit probabilities of all firms across size distribution.

AB - Using a policy experiment that involved the imposition of a technical regulation by the Ministry of Environment and Forests on the Indian leather and textile industries in 1997, firm-level data set is used to study trade, adaptation, innovation and survival effects and how they vary by firm size. The study finds that (i) regulation led to significant gains from trade through the use of improved raw materials and technological change, especially for the big firms, (ii) use of high-quality raw materials and productivity levels significantly account for the exit decision of a firm, and (iii) regulation significantly affects the exit probabilities of all firms across size distribution.

UR - http://www.scopus.com/inward/record.url?scp=84975764312&partnerID=8YFLogxK

M3 - Journal article

AN - SCOPUS:84975764312

VL - 51

SP - 104

EP - 111

JO - Economic and Political Weekly

JF - Economic and Political Weekly

SN - 0012-9976

IS - 24

ER -