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Informal Regulations on Pollution
It is observed that in developing countries environmental problems have been attributed, in addition to other constraints, to inefficient enforcement of pollution control measures by government agencies. This void has, to some extent, been filled by other agents like community, self-regulation by corporate sector (corporate responsibility for environmental protection), and judiciary who have turned out to be very powerful in regulating environmental problems.
Communities have taken initiatives in regulating pollution activities in developing countries; this has happened in counties like India, Indonesia, and Bangladesh. It has been identified that socio-economic characteristics of communities such as literacy, household income, and participation in election have significant influence in regulating industrial pollution.
Increasing public awareness on adverse effects of environmental degradation has also resulted in several social movements for protection of environment. Narmada Bachao Andolan (save Narmada movement) and Chipko movement are examples of public concern for environment protection.
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An economy has two agents and two goods. Utilities are given by UA=min{xA,0.5yA} and UB=min{xB,0.5yB}. The total amount of X in the economy is 10. The total amount of Y is also 10.
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