Journal Article

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

Rajshri Jayaraman and Peter F. Lanjouw

in The World Bank Economic Review

Volume 18, issue 3, pages 443-464
Published in print October 2004 | ISSN: 0258-6770
Published online October 2004 | e-ISSN: 1564-698X | DOI: http://dx.doi.org/10.1093/wber/lhh048
Small-Scale Industry, Environmental Regulation, and Poverty: The Case of Brazil

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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.

Journal Article.  0 words. 

Subjects: Development Planning and Policy

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