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Alternative Pollution Control Policies in Developing Countries

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  • Allen Blackman

Abstract

Weak environmental regulatory institutions in developing countries often undermine conventional command-and-control pollution control policies. As a result, these countries are increasingly experimenting with alternative approaches aimed at leveraging nonregulatory "green" pressures applied by local communities, capital markets, and consumers. This article reviews three strands of the empirical literature on this trend. The first examines the direct impact of nonregulatory pressures on the environmental performance of developing-country firms. The second and third strands analyze policy innovations in developing countries reputed to leverage these pressures--public disclosure and voluntary regulation. Overall, these three strands of literature do not provide widespread compelling evidence that alternative pollution control policies spur significant improvements in environmental performance. A handful of reasonably rigorous studies--particularly those concerning public disclosure--present positive results, but are overshadowed by a larger number of studies that present negative, inconclusive, or unconvincing results. Therefore, policy makers would do well to exercise caution in promoting and implementing alternative pollution control tools in developing countries: they are only likely to be effective in certain forms and situations. Copyright 2010, Oxford University Press.

Suggested Citation

  • 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.
  • Handle: RePEc:oup:renvpo:v:4:y:2010:i:2:p:234-253
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    References listed on IDEAS

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    1. Kathuria, Vinish, 2007. "Informal regulation of pollution in a developing country: Evidence from India," Ecological Economics, Elsevier, vol. 63(2-3), pages 403-417, August.
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    Citations

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    Cited by:

    1. 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.
    2. Lucas Bretschger & Alexandra Vinogradova, 2015. "Equitable and effective climate policy: Integrating less developed countries into a global climate agreement," International Economics and Economic Policy, Springer, vol. 12(4), pages 437-467, October.
    3. Carole Excell & ELIZABETH Moses, 2017. "Thirsting for Justice: Transparency and Poor People’s Struggle for Clean Water in Indonesia, Mongolia, and Thailand," Working Papers id:12066, eSocialSciences.
    4. Allen Blackman, 2012. "Does eco-certification boost regulatory compliance in developing countries? ISO 14001 in Mexico," Journal of Regulatory Economics, Springer, vol. 42(3), pages 242-263, December.
    5. Montoya Gómez, Ana Maria & Zimmer, Markus, 2017. "Assessing the Effects of Climate Policy on Firms' Greenhouse Gas Emissions," Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168273, Verein für Socialpolitik / German Economic Association.
    6. Allen Blackman & Eduardo Uribe & Bart Hoof & Thomas Lyon, 2013. "Voluntary environmental agreements in developing countries: the Colombian experience," Policy Sciences, Springer;Society of Policy Sciences, vol. 46(4), pages 335-385, December.
    7. Ummad Mazhar & Ceyhun Elgin, 2013. "Environmental Regulation, Pollution and the Informal Economy," SBP Research Bulletin, State Bank of Pakistan, Research Department, vol. 9, pages 62-81.
    8. Blackman, Allen & Guerrero, Santiago, 2012. "What drives voluntary eco-certification in Mexico?," Journal of Comparative Economics, Elsevier, vol. 40(2), pages 256-268.
    9. Michael Greenstone & B. Kelsey Jack, 2013. "Envirodevonomics: A Research Agenda for a Young Field," NBER Working Papers 19426, National Bureau of Economic Research, Inc.
    10. Ibanez, Marcela & Blackman, Allen, 2016. "Is Eco-Certification a Win–Win for Developing Country Agriculture? Organic Coffee Certification in Colombia," World Development, Elsevier, vol. 82(C), pages 14-27.
    11. Lyon, Thomas & Lu, Yao & Shi, Xinzheng & Yin, Qie, 2013. "How do investors respond to Green Company Awards in China?," Ecological Economics, Elsevier, vol. 94(C), pages 1-8.
    12. Markus Kitzmueller & Jay Shimshack, 2012. "Economic Perspectives on Corporate Social Responsibility," Journal of Economic Literature, American Economic Association, vol. 50(1), pages 51-84, March.
    13. Blackman, Allen & Naranjo, María Angélica & Robalino, Juan & Alpízar, Francisco & Rivera, Jorge, 2014. "Does Tourism Eco-Certification Pay? Costa Rica’s Blue Flag Program," World Development, Elsevier, vol. 58(C), pages 41-52.
    14. Fikru, Mahelet G., 2016. "Determinants of International Standards in sub-Saharan Africa: The role of institutional pressure from different stakeholders," Ecological Economics, Elsevier, vol. 130(C), pages 296-307.
    15. Escobar, Ninel & Chávez, Carlos, 2013. "Monitoring, firms’ compliance and imposition of fines: evidence from the Federal Industrial Inspection Program in Mexico City," Environment and Development Economics, Cambridge University Press, vol. 18(06), pages 723-748, December.
    16. David Wheeler, Dan Hammer, Robin Kraft, 2011. " From REDD to Green: A Global Incentive System to Stop Tropical Forest Clearing- Working Paper 282," Working Papers 282, Center for Global Development.
    17. Thomas P. Lyon & John W. Maxwell, 2012. "Self-Regulation, Negotiated Agreements and Social Welfare," Working Papers 2012-11, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
    18. Ana Maria Montoya Gómez & Markus Zimmer, 2017. "Assessing the Effects of Climate Policy on Companies' Greenhouse Gas Emissions," CESifo Working Paper Series 6651, CESifo Group Munich.

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