The EU Large Combustion Plant Directive (LCPD) is a major but largely unstudied environmental regulation. Most of the 1585 large combustion plants in this analysis are electricity supply plants or combined heat and power plants. We find that, controlling for country characteristics and plant size, plants in the electricity supply, combined heat and power, district heating, and paper industries have a higher probability of being opted-out of the emission limit values (ELVs), which necessitates eventual plant closure. Controlling for plant size and industry, increasing the amount of solid fuel or natural gas utilized at a plant is associated with a decreased likelihood of being opted-out of the ELVs. (C) 2017 Elsevier Ltd. All rights reserved.