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Controlling industrial pollution : a new paradigm

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  • Afsah, Shakeb
  • Laplante, Benoit
  • Wheeler, David
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    Abstract

    The authors call for a revised model for the regulation of industrial pollution. They think the traditional emphasis on appropriate instruments, while ultimately correct, is premature, because agencies in most developing countries have insufficient information and burdensome transaction costs to implement any instruments comprehensively. Once regulators have better information, more integrated information systems, more capacity for setting priorities, and a stronger public mandate, it will not be difficult for them to manage pollution more cost-effectively. Overhasty production of market-based instruments will not work and will probably discredit those regulatory tools. Rather, the new model of regulation should relegate regulators to their proper place in the scheme of things. The state should play a role in regulating pollution externalities, but should also recognize the role of the community and the market. In the authors'view, appropriate regulation in developing countries should incorporate five key features, namely, it should foster a climate of information intensity, encourage community environmental education, allow variations in regulations in different communities, initiate pilot projects and build larger programs later, and fashion adaptive regulatory instruments that both counter environmental degradation and minimize disruption for investors.

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    Bibliographic Info

    Paper provided by The World Bank in its series Policy Research Working Paper Series with number 1672.

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    Date of creation: 31 Oct 1996
    Date of revision:
    Handle: RePEc:wbk:wbrwps:1672

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    Related research

    Keywords: Health Monitoring&Evaluation; Environmental Economics&Policies; Water and Industry; Public Health Promotion; Decentralization; ICT Policy and Strategies; Urban Services to the Poor; Environmental Economics&Policies; Water and Industry; Health Monitoring&Evaluation;

    References

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    1. Catherine Dion & Paul Lanoie & Benoit Laplante, 1996. "Monitoring of Pollution Regulation: Do Local Conditions Matter," CIRANO Working Papers 96s-33, CIRANO.
    2. Hettige, Hemamala & Huq, Mainul & Pargal, Sheoli & Wheeler, David, 1996. "Determinants of pollution abatement in developing countries: Evidence from South and Southeast Asia," World Development, Elsevier, vol. 24(12), pages 1891-1904, December.
    3. Mary E. Deily & Wayne B. Gray, 1989. "Enforcement of pollution regulations in a declining industry," Working Paper 8912, Federal Reserve Bank of Cleveland.
    4. Hamilton James T., 1995. "Pollution as News: Media and Stock Market Reactions to the Toxics Release Inventory Data," Journal of Environmental Economics and Management, Elsevier, vol. 28(1), pages 98-113, January.
    5. Afsah, Shakeb & Laplante, Benoit & Makarim, Nabiel, 1996. "Program-based pollution control management : the Indonesian PROKASIH program," Policy Research Working Paper Series 1602, The World Bank.
    6. Hua Wang & Wheeler, David, 1996. "Pricing industrial pollution in China : an econometric analysis of the levy system," Policy Research Working Paper Series 1644, The World Bank.
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    Citations

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    Cited by:
    1. Estelle Gozlan & Bernard Sinclair-Desgagné, 2001. "A Theory of Environmental Risk Disclosure," CIRANO Working Papers 2001s-17, CIRANO.
    2. Dasgupta, Susmita & Hong, Jong Ho & Laplante, Benoit & Mamingi, Nlandu, 2006. "Disclosure of environmental violations and stock market in the Republic of Korea," Ecological Economics, Elsevier, vol. 58(4), pages 759-777, July.
    3. Lanoie, Paul & Laplante, Benoit & Roy, Maite, 1998. "Can capital markets create incentives for pollution control?," Ecological Economics, Elsevier, vol. 26(1), pages 31-41, July.
    4. Hettige, Hemamala & Mani, Muthukumara & Wheeler, David, 2000. "Industrial pollution in economic development: the environmental Kuznets curve revisited," Journal of Development Economics, Elsevier, vol. 62(2), pages 445-476, August.
    5. Dasgupta, Susmita & Hettige, Hemamala & Wheeler, David, 1998. "What improves environmental performance? evidence from Mexican industry," Policy Research Working Paper Series 1877, The World Bank.
    6. Shreekant Gupta, 2003. "Do Stock Markets Penalise Environment-Unfriendly Behaviour? Evidence from India," Working papers 116, Centre for Development Economics, Delhi School of Economics.
    7. Tom Tietenberg, 1998. "Disclosure Strategies for Pollution Control," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 11(3), pages 587-602, April.
    8. María Teresa Ruiz-Tagle, 2006. "What are the Determinants of Environmental Compliance in the Chilean manufacturing Industry? A case study," Environmental Economy and Policy Research Working Papers 17.2006, University of Cambridge, Department of Land Economics, revised 2006.
    9. Blackman, Allen & Harrington, Winston, 1999. "The Use of Economic Incentives in Developing Countries: Lessons from International Experience with Industrial Air Pollution," Discussion Papers dp-99-39, Resources For the Future.
    10. Paul Lanoie & Benoit Laplante & Maité Roy, 1997. "Can Capital Markets Create Incentives for Pollution Control?," CIRANO Working Papers 97s-05, CIRANO.
    11. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
    12. María Teresa Ruiz-Tagle, 2006. "Why do Manufacturing Plants Invest in Environmental Management?," Environmental Economy and Policy Research Working Papers 20.2006, University of Cambridge, Department of Land Economics, revised 2006.
    13. Dasgupta, Susmita & Huq, Mainul & Wheeler, David, 1997. "Bending the rules : discretionary pollution control in China," Policy Research Working Paper Series 1761, The World Bank.
    14. Hua Wang & Wenhua Di, 2002. "The determinants of Government environmental performance - an empirical analysis of Chinese townships," Policy Research Working Paper Series 2937, The World Bank.
    15. Gupta, Shreekant & Goldar, Bishwanath, 2005. "Do stock markets penalize environment-unfriendly behaviour? Evidence from India," Ecological Economics, Elsevier, vol. 52(1), pages 81-95, January.
    16. Dasgupta, Susmita & Jong Ho Hong & Laplante, Benoit & Mamingi, Nlandu, 2004. "Disclosure of environmental violations and the stock market in the Republic of Korea," Policy Research Working Paper Series 3344, The World Bank.
    17. Mark Cohen & V. Santhakumar, 2007. "Information Disclosure as Environmental Regulation: A Theoretical Analysis," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 37(3), pages 599-620, July.
    18. Dasgupta, Susmita & Laplante, Benoit & Mamingi, Nlandu, 1998. "Capital markets responses to environmental performance in developing countries," Policy Research Working Paper Series 1909, The World Bank.

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