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Environmental performance rating and disclosure - China's green-watch program

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Author Info

  • Hua Wang
  • Jun Bi
  • Wheeler, David
  • Jinnan Wang
  • Dong Cao
  • Genfa Lu
  • Yuan Wang
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Abstract

This paper describes a new incentive-based pollution control program in China in which the environmental performance of firms is rated and reported to the public. Firms are rated from best to worst using five colors-green, blue, yellow, red, and black-and the ratings are disseminated to the public through the media. The impact has been substantial, suggesting that public disclosure provides a significant incentive for firms to improve their environmental performance. The paper focuses on the experience of the first two disclosure programs, in Zhenjiang, Jiangsu Province and Hohhot, Inner Mongolia. Successful implementation of these programs at two very different levels of economic and institutional development suggests that public disclosure should be feasible in most of China. The Zhenjiang and Hohhot experiences have also shown that performance disclosure can significantly reduce pollution, even in settings where environmental nongovernmental organizations are not very active and there is no formal channel for public participation in environmental regulation.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2889.

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Date of creation: 30 Sep 2002
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Handle: RePEc:wbk:wbrwps:2889

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Keywords: Environmental Economics&Policies; Public Health Promotion; Decentralization; Water and Industry; Health Monitoring&Evaluation; Environmental Economics&Policies; Water and Industry; Health Monitoring&Evaluation; National Governance; Health Economics&Finance;

References

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  1. Dasgupta, Susmita & Laplante, Benoit & Mamingi, Nlandu, 2001. "Pollution and Capital Markets in Developing Countries," Journal of Environmental Economics and Management, Elsevier, vol. 42(3), pages 310-335, November.
  2. Konar, Shameek & Cohen, Mark A., 1997. "Information As Regulation: The Effect of Community Right to Know Laws on Toxic Emissions," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 109-124, January.
  3. Dasgupta, Susmita & Wheeler, David, 1997. "Citizen complaints as environmental indicators : evidence from China," Policy Research Working Paper Series 1704, The World Bank.
  4. Dasgupta, Susmita & Hettige, Hemamala & Wheeler, David, 2000. "What Improves Environmental Compliance? Evidence from Mexican Industry," Journal of Environmental Economics and Management, Elsevier, vol. 39(1), pages 39-66, January.
  5. 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.
  6. Foulon, Jerome & Lanoie, Paul & Laplante, Benoit, 2002. "Incentives for Pollution Control: Regulation or Information?," Journal of Environmental Economics and Management, Elsevier, vol. 44(1), pages 169-187, July.
  7. Dasgupta, Susmita & Hua Wang & Wheeler, David, 1997. "Surviving success : policy reform and the future of industrial pollution in China," Policy Research Working Paper Series 1856, The World Bank.
  8. Blackman, Allen & Afsah, Shakeb & Ratunanda, Damayanti, 2000. "How Do Public Disclosure Pollution Control Programs Work? Evidence from Indonesia," Discussion Papers dp-00-44, Resources For the Future.
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Citations

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Cited by:
  1. Assar Lindbeck, 2008. "Economic-social interaction in China," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 16(1), pages 113-139, 01.
  2. Nicholas, Powers & Blackman, Allen & Lyon, Thomas P. & Narain, Urvashi, 2008. "Does Disclosure Reduce Pollution? Evidence from India’s Green Rating Project," Discussion Papers dp-08-27-efd, Resources For the Future.
  3. Jin, Yanhong & Wang, Hua & Wheeler, David, 2010. "Environmental performance rating and disclosure : an empirical investigation of China's green watch program," Policy Research Working Paper Series 5420, The World Bank.
  4. Blackman, Allen, 2009. "Alternative Pollution Control Policies in Developing Countries: Informal, Informational, and Voluntary," Discussion Papers dp-09-10, Resources For the Future.
  5. Allen Blackman, 2010. "Alternative Pollution Control Policies in Developing Countries," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(2), pages 234-253, Summer.
  6. Lindbeck, Assar, 2006. "Economic-Social Interaction during China’s Transition," Working Paper Series 680, Research Institute of Industrial Economics.
  7. Jin, Yanhong & Wang, Hua & Wheeler, David, 2010. "The impact of environmental performance rating and disclosure: an empirical analysis of perceptions by polluting firms'managers in China," Policy Research Working Paper Series 5419, The World Bank.
  8. 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.

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