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Industrial environmental performance in China - the impact of inspections

Author

Listed:
  • Dasgupta, Susmita
  • Laplante, Benoit
  • Namingi, Nlandu
  • Hua Wang

Abstract

Little empirical research has been done on monitoring and enforcement issues in environmental economics, especially to analyze the impact of monitoring and enforcement on polluters'environmental performance. No studies have been done in developing economies. The authors explore the impact of inspections, and the potential impact of pollution charges and citizen's complaints, on the environmental performance of polluters in China. Their analysis of plant-level data from the city of Zhenjiang shows that: 1) Inspections have a statistically significant impact on firm's environmental performance. 2) Pollution charges do not have a statistically significant effect on firms'performance - although the lack of variation in pollution charges in Zhenjiang precludes effectively capturing their impact. 3) Complaints have a significant impact on inspections and therefore on pollution control. Currently available data do not allow analysis of whether the cost of additional inspections is justified, but it is reasonable to speculate that additional inspections would improve social welfare in Zhenjiang, and that information and education campaigns are probably a good way to encourage citizen complaints.

Suggested Citation

  • Dasgupta, Susmita & Laplante, Benoit & Namingi, Nlandu & Hua Wang, 2000. "Industrial environmental performance in China - the impact of inspections," Policy Research Working Paper Series 2285, The World Bank.
    • Handle: RePEc:wbk:wbrwps:2285
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    References listed on IDEAS

    as
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    Cited by:

    1. Carlos Wing-Hung Lo & Gerald E Fryxell & Benjamin Van Rooij, 2009. "Changes in Enforcement Styles among Environmental Enforcement Officials in China," Environment and Planning A, , vol. 41(11), pages 2706-2723, November.
    2. Zhenhua Zhang & Guoxing Zhang & Shunfeng Song & Bin Su, 2020. "Spatial Heterogeneity Influences of Environmental Control and Informal Regulation on Air Pollutant Emissions in China," IJERPH, MDPI, vol. 17(13), pages 1-22, July.
    3. Benjamin Van Rooij & Gerald E. Fryxell & Carlos Wing‐Hung Lo & Wei Wang, 2013. "From support to pressure: The dynamics of social and governmental influences on environmental law enforcement in Guangzhou City, China," Regulation & Governance, John Wiley & Sons, vol. 7(3), pages 321-347, September.
    4. Yong Liu & Fei Li & Yunpeng Su, 2019. "Critical Factors Influencing the Evolution of Companies’ Environmental Behavior: An Agent-Based Computational Economic Approach," SAGE Open, , vol. 9(1), pages 21582440198, February.

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