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Community Pressure and Clean Technology in the Informal Sector: An Econometric Analysis of the Adoption of Propane by Traditional Mexican Brickmakers
Open accessAbstract
Abstract In many developing countries the informal sector, comprised of low-technology unlicensed micro-enterprises, is a major source of pollution. Environmental management in this sector is exceptionally challenging. Though clean technologies offer a means of mitigating the problem, to our knowledge there has been no rigorous empirical research on why informal (or even small-scale) firms do and do not adopt them. As a first step toward filling this gap, this paper presents the results of an econometric analysis of the diffusion of propane among informal “traditional” brickmakers in Cd. Juarez, Mexico—a leading source of air pollution owing to their reliance on cheap, highly polluting fuels such as used tires and scrap wood. The two key policy implications of our analysis are that: (1) it is possible to successfully promote the adoption of a clean technology by intensely competitive informal firms even when the new technology significantly raises variable costs, and (2) community pressure applied by competing firms and private-sector local organizations can generate incentives for adoption.
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Cites
Adoption of Agricultural Innovations in Developing Countries: A Survey
Feder, G., Just, R. E., & Zilberman, D. (1985) · Economic Development and Cultural Change · doi:10.1086/451461 · Cited by 3,482
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Popp, D., Newell, R. G., & Jaffe, A. B. (2010) · Handbook of the Economics of Innovation · doi:10.1016/s0169-7218(10)02005-8 · Cited by 757
Technological Change and the Environment
Jaffe, A., Newell, R., & Stavins, R. (2000) · National Bureau of Economic Research · doi:10.3386/w7970 · Cited by 591
Technological change and the Environment
Jaffe, A. B., Newell, R. G., & Stavins, R. N. (2003) · Handbook of Environmental Economics · doi:10.1016/s1574-0099(03)01016-7 · Cited by 473
Pollution, shadow economy and corruption: Theory and evidence
Biswas, A. K., Farzanegan, M. R., & Thum, M. (2012) · Ecological Economics · doi:10.1016/j.ecolecon.2012.01.007 · Cited by 360
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Gupta, S., & Goldar, B. (2005) · Ecological Economics · doi:10.1016/j.ecolecon.2004.06.011 · Cited by 283
Metadata
- Authors
- Blackman, A., & Bannister, G. J.
- Venue
- Journal of Environmental Economics and Management
- Publisher
- Elsevier BV
- Published
- 1998-01
- Volume
- 35
- Issue
- 1
- Pages
- 1-21
- ISSN
- 0095-0696 (ISSN-L)
- OpenAlex
- W2142140661
- Cited by
- 171
- References
- 1
- FWCI
- 7.21
- Type
- journal article
- Language
- en
- Open access
- green
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- Blackman, A., & Bannister, G. J. (1998). Community Pressure and Clean Technology in the Informal Sector: An Econometric Analysis of the Adoption of Propane by Traditional Mexican Brickmakers. Journal of Environmental Economics and Management. https://doi.org/10.1006/jeem.1998.1019
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
