Paper Title:

Clean Technological Change In Developing-Country Industrial Clusters: Mexican Leather Tanning

Presenting Author: Allen Blackman (Resources for the Future)
Coauthor 1: Arne Kildegaard
Coauthor 2:
Coauthor 3:
In developing countries, urban clusters of dirty small- and medium-scale enterprises have severe environmental impacts. Since conventional public-sector regulation is generally ineffective in such situations, a promising second-best approach is to promote the voluntary adoption of clean technologies. However, there has been little economic research to guide policymaking. This paper uses original firm-level survey data on a sample of 164 small- and medium-scale leather tanneries in León, Guanajuato—Mexico’s leather capital—to econometrically identify the determinants of the adoption of five different clean tanning technologies. Contrary to the recent literature, we find that neither conventional regulatory pressure nor “informal regulatory pressure” applied by private-sector agents plays an important role. Rather, key determinants of adoption are the firm’s human capital and stock of technical information, the same factors that drive the adoption of conventional productivity-enhancing technologies. In addition, we find that private-sector trade associations and input suppliers are critical sources of technical information.
Link to paper:
Session / Day / Time 5E / Tuesday / 8:00 - 10:00 am
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