Environmental Regulation and Costs of Information: Some Indications from Greek Industry

The paper discusses the problem of indirect costs of environmental regulation as information costs and their role in the compliance of firms. After reviewing the relevant literature, a typology of indirect cost of implementation is proposed which aims at the separation of various components of the information cost. The core of the empirical study includes some indications about the significance of the indirect costs of present air pollution abatement policies to the Greek industry. Conclusions are drawn on the role of information costs in shaping the profile of environmental compliance in Greece.