Environmental and Resource Economics

, Volume 50, Issue 1, pp 131–155

Does Disclosure Reduce Pollution? Evidence from India’s Green Rating Project

Authors

    • The Brattle Group
  • Allen Blackman
    • Resources for the Future
    • Environment for Development Center for Central America, CentroAgronómico Tropical de Investigación y Enseñanza (CATIE)
  • Thomas P. Lyon
    • University of Michigan
  • Urvashi Narain
    • The World Bank
Article

DOI: 10.1007/s10640-011-9465-y

Cite this article as:
Powers, N., Blackman, A., Lyon, T.P. et al. Environ Resource Econ (2011) 50: 131. doi:10.1007/s10640-011-9465-y

Abstract

Public disclosure programs that collect and disseminate information about firms’ environmental performance are increasingly popular in both developed and developing countries. Yet little is known about whether they actually improve environmental performance, particularly in the latter setting. We use detailed plant-level survey data to evaluate the impact of India’s Green Rating Project (GRP) on the environmental performance of the country’s largest pulp and paper plants. We find that the GRP drove significant reductions in pollution loadings among dirty plants but not among cleaner ones. This result comports with statistical and anecdotal evaluations of similar disclosure programs. We also find that plants located in wealthier communities were more responsive to GRP ratings, as were single-plant firms.

Keywords

Public disclosurePollution controlIndiaPulp and paper

JEL Classification

Q53Q56Q58

Copyright information

© Springer Science+Business Media B.V. 2011