Initiating Environmental Behavior in Manufacturing Plants in Indonesia

Abstract

This article reports on a survey of the environmental behaviors of manufacturing plants in a large industrial city in Indonesia. The survey identified plant-level environmental behaviors and measured the extent of exposure of plants to regulatory, community, and market pressures and to government incentives designed to get plants to install pollution control equipment. Statistical findings show that plant characteristics, regulatory actions, community and market pressures, and government incentives all influence whether a plant invests in pollution control, whether it engages in environmental management, and the extent of environmental management practices. But findings also show that only characteristics of plants (size and sector) exert influence on the level of pollution abatement expenditures. Because exposure to regulatory actions and community and market pressures is low, these findings are not surprising, but they do suggest that plants respond to these pressures and actions.