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The Impact of an Ambient Pollution Regulation on Industrial Emissions in India

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  • Shubhangi, Tanaya

Abstract

This study is an empirical analysis into the causal claim that India’s National Clean Air Programme (NCAP), despite being an ambient air pollution policy is able to bring down industrial emissions. Using a panel dataset of Indian cities from 2011-2022 and by employing a Synthetic Differences-in-differences (SDID) approach, the study measures the causal impact of NCAP on industrial emissions, proxied by PM10 levels, to answer this question. The SDID model is particularly suited for this analysis as it creates a robust, data-driven counterfactual from a small control group. Results indicate NCAP caused a significant reduction in PM10 concentrations, with an estimated average treatment effect of −14.05 𝜇𝑔/𝑚3. This result suggests well-designed ambient regulations can be a cost-effective policy tool for pollution mitigation in developing countries.

Suggested Citation

  • Shubhangi, Tanaya, 2025. "The Impact of an Ambient Pollution Regulation on Industrial Emissions in India," 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO 360766, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea25:360766
    DOI: 10.22004/ag.econ.360766
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    References listed on IDEAS

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    1. Michael Greenstone & Rema Hanna, 2014. "Environmental Regulations, Air and Water Pollution, and Infant Mortality in India," American Economic Review, American Economic Association, vol. 104(10), pages 3038-3072, October.
    2. Stefan Ambec & Mark A. Cohen & Stewart Elgie & Paul Lanoie, 2013. "The Porter Hypothesis at 20: Can Environmental Regulation Enhance Innovation and Competitiveness?," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 7(1), pages 2-22, January.
    3. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
    4. Nyborg, Karine & Telle, Kjetil, 2004. "A dissolving paradox: Firms’ compliance to environmental regulation," Memorandum 02/2004, Oslo University, Department of Economics.
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