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Using a panel dataset, containing information from Romanian industrial sector, this paper analyse the determinants of the pollution abatement expenditure, in the context of transition economy. We consider information related to the pollution abatement expenditure at plant level, plant – specific characteristics, state and local regulatory stringency, market incentives and community characteristics. Our results stress that the population’s potential for collective action in the environmental area is not signifi...

One of main concern of policy makers is pollution and hence the improvement of the environmental quality. The implementation of environment policies aims at improving life and product quality in order to replace those obtained by high polluting processes by less polluting ones. Countries having more strict environmental regulations are likely to suffer from a significant increase of their production costs. As a consequence these countries become less competitive on the international market and may lose their marke...