01097pab a2200133 454500008004000000100002000040245006600060260000900126300001400135362001100149520074400160650002500904773003400929180718b2005   xxu||||| |||| 00| 0 eng d  aTholkappian, S.  aEnvironmental regulation: hidden costs and empirical evidence  c2005  ap.856-59.  a26 Feb  aMany studies that have analysed the cost of compliance with environmental regulation have invariably confined themselves to the direct costs involved. However, a few studies have attempted to examine the effect of regulation on the production process of the firm and considered it as the additional unaccounted cost of compliance. This study, following the method developed by Morgenstern and others in 1998, estimates the hidden costs involved due to environmental regulation. Using firm-level primary survey data, this study of the Karur textile industrial cluster finds that there are hidden costs involved in complying with environmental regulation; the policy-maker has to take these additional costs into consideration. - Reproduced.  aEnvironmental policy  aEconomic and Political Weekly