Recent theories of firms' environmental behavior propose that numerous factors influence a firm's environmental decision-making process. Economic considerations play a central role, but interactions between the economic climate, regulatory structure, and social culture in which a firm operates are more important than economic considerations alone. This article investigates the conditions surrounding eight existing pulp and paper mills in Maine that influence the level of compliance. Factors unique to Maine's economy, history, and relationship between people and their environment come together to influence firms' environmental performance and attitude. Such “place-based characteristics” are crucial in designing policies to promote economic development and protect environmental quality.
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