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How Do Public Disclosure Pollution Control Programs Work? Evidence from Indonesia

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  • Afsah, Shakeb
  • Blackman, Allen
  • Ratunanda, Damayanti

Abstract

Although a growing body of evidence suggests that publicly disclosing information about plants' environmental performance can motivate emissions reductions, this phenomenon remains poorly understood. To help fill this gap, this paper presents original data from a survey of plants participating in the Program for Pollution Control, Evaluation and Rating (PROPER), Indonesia's widely-acclaimed public disclosure program. These data suggest that a key means by which PROPER spurs abatement is improving factory managers' information about their own plants' emissions and abatement opportunities. This finding contrasts with the prevailing view in the literature that public disclosure enhances pressures to abate placed on firms by external agents such as community groups and shareholders. But our data also suggest that PROPER's "environmental audit" effect operates in concert with external pressures. Therefore, simply supplying new information to plant managers without making that information public may not be sufficient to motivate significant abatement.

Suggested Citation

  • Afsah, Shakeb & Blackman, Allen & Ratunanda, Damayanti, 2000. "How Do Public Disclosure Pollution Control Programs Work? Evidence from Indonesia," Discussion Papers 10515, Resources for the Future.
  • Handle: RePEc:ags:rffdps:10515
    DOI: 10.22004/ag.econ.10515
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    File URL: https://ageconsearch.umn.edu/record/10515/files/dp000044.pdf
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    References listed on IDEAS

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    Cited by:

    1. Garcã A, Jorge H. & Sterner, Thomas & Afsah, Shakeb, 2007. "Public disclosure of industrial pollution: the PROPER approach for Indonesia?," Environment and Development Economics, Cambridge University Press, vol. 12(6), pages 739-756, December.
    2. Genandrialine L. Peralta, 2003. "A Study of the Environmental Performance on Hazardous Waste Management of the Semiconductor and Electronics Industries in Selected Industrial Estates in Luzon, Philippines," EEPSEA Special and Technical Paper tp200305t2, Economy and Environment Program for Southeast Asia (EEPSEA), revised May 2003.
    3. Massier, Philipp & Römer, Daniel, 2012. "On the Obligation to Provide Environmental Information in the 21st Century – Empirical Evidence from Germany," Working Papers 0524, University of Heidelberg, Department of Economics.
    4. Jorge García & Shakeb Afsah & Thomas Sterner, 2009. "Which Firms are More Sensitive to Public Disclosure Schemes for Pollution Control? Evidence from Indonesia’s PROPER Program," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 42(2), pages 151-168, February.
    5. Anil R. Doshi & Glen W.S. Dowell & Michael W. Toffel, 2011. "How Firms Respond to Mandatory Information Disclosure," Harvard Business School Working Papers 12-001, Harvard Business School, revised Jun 2012.
    6. Kaiser, Kai & Schulze, Günther G., 2003. "International Competition and Environmental Expenditures: Empirical Evidence from Indonesian Manufacturing Plants," HWWA Discussion Papers 222, Hamburg Institute of International Economics (HWWA).
    7. John Olatunji ADEOTI, 2001. "Technology Investment In Pollution Control In Sub-Saharan Africa: Evidence From Nigerian Manufacturing," The Developing Economies, Institute of Developing Economies, vol. 39(4), pages 395-431, December.
    8. 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.
    9. Jun Li & Di (Andrew) Wu, 2020. "Do Corporate Social Responsibility Engagements Lead to Real Environmental, Social, and Governance Impact?," Management Science, INFORMS, vol. 66(6), pages 2564-2588, June.
    10. Garcia, Jorge H. & Afsah, Shakeb & Sterner, Thomas, 2008. "What Kinds of Firms Are More Sensitive to Public Disclosure Programs for Pollution Control? The Case of Indonesia’s PROPER Program," Discussion Papers dp-08-12-efd, Resources For the Future.
    11. Parry, Ian & Fischer, Carolyn & Jawahar, Puja & Aguilar , Francisco, 2005. "Corporate Codes of Conduct: Is Common Environmental Content Feasible?," Discussion Papers dp-05-09, Resources For the Future.
    12. World Bank, 2006. "India - Strengthening Institutions for Sustainable Growth : Country Environmental Analysis," World Bank Other Operational Studies 19628, The World Bank.
    13. Hua Wang & Jun Bi & Wheeler, David & Jinnan Wang & Dong Cao & Genfa Lu & Yuan Wang, 2002. "Environmental performance rating and disclosure - China's green-watch program," Policy Research Working Paper Series 2889, The World Bank.

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