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Why do Governments Overpromise and Underdeliver? Evidence from India's National Clean Air Programme

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  • Dhinakar Bala, Archana
  • Mattsson, Martin
  • Vyas, Sangita

Abstract

What are the political consequences of setting ambitious policy targets, but then failing to meet them? We study this question in the context of India’s National Clean Air Programme (NCAP), a flagship policy designed to cut air pollution by 40% in 131 cities and address a crisis that causes 1.2 million deaths annually. Using multiple difference-in-differences approaches, we demonstrate that the program had no effect on air pollution. In a survey experiment with residents of NCAP cities, we show that informing citizens about NCAP boosted their approval of the government’s air pollution policy. Surprisingly, this effect persisted even when respondents were told the program had no impact — revealing a clear political benefit from the ambitious announcement, and minimal cost for the implementation failure. This incentive structure is consistent with the lack of political commitment to implementing NCAP, which we document, and is a likely explanation for the program’s failure.

Suggested Citation

  • Dhinakar Bala, Archana & Mattsson, Martin & Vyas, Sangita, 2025. "Why do Governments Overpromise and Underdeliver? Evidence from India's National Clean Air Programme," CEPR Discussion Papers 20925, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:20925
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    More about this item

    JEL classification:

    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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