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

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  • Nicholas Powers

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  • Allen Blackman
  • Thomas Lyon
  • Urvashi Narain

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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Suggested Citation

  • Nicholas Powers & Allen Blackman & Thomas Lyon & Urvashi Narain, 2011. "Does Disclosure Reduce Pollution? Evidence from India’s Green Rating Project," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(1), pages 131-155, September.
  • Handle: RePEc:kap:enreec:v:50:y:2011:i:1:p:131-155
    DOI: 10.1007/s10640-011-9465-y
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Kathleen Segerson, 2013. "Voluntary Approaches to Environmental Protection and Resource Management," Annual Review of Resource Economics, Annual Reviews, vol. 5(1), pages 161-180, June.
    2. Allen Blackman & Sarah Darley & Thomas P. Lyon & Kris Wernstedt, 2010. "What Drives Participation in State Voluntary Cleanup Programs? Evidence from Oregon," Land Economics, University of Wisconsin Press, vol. 86(4), pages 785-799.
    3. Nicholas E. Powers, 2013. "Measuring The Impact Of The Toxics Release Inventory: Evidence From Manufacturing Plant Births," Working Papers 13-07, Center for Economic Studies, U.S. Census Bureau.
    4. Li, Yi, 2017. "Voluntary disclosure and investment in environmental technology," Journal of Economic Behavior & Organization, Elsevier, vol. 133(C), pages 331-341.
    5. repec:eee:eneeco:v:68:y:2017:i:c:p:215-227 is not listed on IDEAS
    6. Olmstead, Sheila & Richardson, Nathan, 2014. "Managing the Risks of Shale Gas Development Using Innovative Legal and Regulatory Approaches," Discussion Papers dp-14-15, Resources For the Future.

    More about this item

    Keywords

    Public disclosure; Pollution control; India; Pulp and paper; Q53; Q56; Q58;

    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 Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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