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

Governments and international development agencies have intensified efforts to promote small-scale enterprises as an engine of pro-poor growth. In Brazil, however, small scale industries may also be responsible for the bulk of air pollution emissio...

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Bibliographic Details
Main Authors: Jayaraman, Rajshri, Lanjouw, Peter F.
Format: Journal Article
Language:English
en_US
Published: Washington, DC: World Bank 2014
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2004/09/17742632/small-scale-industry-environmental-regulation-poverty-case-brazil
http://hdl.handle.net/10986/17166
Description
Summary:Governments and international development agencies have intensified efforts to promote small-scale enterprises as an engine of pro-poor 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 non-negligible 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.