Community Pressure and Environmental Compliance: Case of Rubber Processing in Sri Lanka

This study uses data from rubber processing factories in Sri Lanka to identify the impact of informal regulation on environmental compliance. Unlike earlier studies, this study looks at three pollution measures; Chemical Oxygen Demand (COD), Biological Oxygen Demand (BOD) and Total Suspended Solids (TSS) in a simultaneous analysis taking into account the potential correlation of the residuals if these equations are estimated separately. The results suggest that formal regulation play a minor role in making factories complying with environmental standards. However, there are significant gains to be made through informal regulation in this sector.

DOI: http://dx.doi.org/10.4038/jepsl.v1i1.5139

Journal of Environmental Professionals Sri Lanka Vol.1(1) 2012 14-23