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Does Disclosure Reduce Pollution? Evidence from India's Green Rating Project

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Author Info
Powers, Nicholas
Blackman, Allen () (Resources for the Future)
Lyon, Thomas P.
Narain, Urvashi

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Abstract

Public disclosure programs that collect and disseminate information about firms’ environmental performance are increasingly popular in both developed and developing countries. Yet little is known about whether they actually improve environmental performance, particularly in the latter setting. We use detailed plant-level survey data to evaluate the impact of India’s Green Rating Project (GRP) on the environmental performance of the country’s largest pulp and paper plants. We find that the GRP drove significant reductions in pollution loadings among dirty plants but not among cleaner ones. This result comports with statistical and anecdotal evaluations of similar disclosure programs. We also find that plants located in wealthier communities were more responsive to GRP ratings, as were single-plant firms.

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Paper provided by Resources For the Future in its series Discussion Papers with number dp-08-38.

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Date of creation: 15 Oct 2008
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Handle: RePEc:rff:dpaper:dp-08-38

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Related research
Keywords: public disclosure; pollution control; India; pulp and paper;

Find related papers by JEL classification:
Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounting
Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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  5. Segerson, Kathleen & Miceli, Thomas J., 1998. "Voluntary Environmental Agreements: Good or Bad News for Environmental Protection?," Journal of Environmental Economics and Management, Elsevier, vol. 36(2), pages 109-130, September. [Downloadable!] (restricted)
  6. Hua Wang & Jun Bi & Wheeler, David & Jinnan Wang & Dong Cao & Genfa Lu & Yuan Wang, 2002. "Environmental performance rating and disclosure - China's green-watch program," Policy Research Working Paper Series 2889, The World Bank. [Downloadable!]
  7. Bennear, Lori S. & Olmstead, Sheila M., 2008. "The impacts of the "right to know": Information disclosure and the violation of drinking water standards," Journal of Environmental Economics and Management, Elsevier, vol. 56(2), pages 117-130, September. [Downloadable!] (restricted)
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  10. Magali Delmas & Maria Montes-Sancho & Jay P. Shimshack, 2007. "Information Disclosure Policies: Evidence from the Electricity Industry," Discussion Papers Series, Department of Economics, Tufts University 0707, Department of Economics, Tufts University. [Downloadable!]
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