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

33 Pages Posted: 28 Oct 2008

See all articles by Nicholas Powers

Nicholas Powers

The Brattle Group

Allen Blackman

Inter-American Development Bank (IDB)

Thomas P. Lyon

University of Michigan, Stephen M. Ross School of Business

Urvashi Narain

World Bank

Date Written: October 15, 2008

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 disclosure, pollution control, India, pulp and paper

JEL Classification: Q53, Q56, Q58

Suggested Citation

Powers, Nicholas and Blackman, Allen and Lyon, Thomas P. and Narain, Urvashi, Does Disclosure Reduce Pollution? Evidence from India's Green Rating Project (October 15, 2008). RFF Discussion Paper No. 08-38. Available at SSRN: https://ssrn.com/abstract=1288654 or http://dx.doi.org/10.2139/ssrn.1288654

Nicholas Powers (Contact Author)

The Brattle Group ( email )

1850 M St NW
Suite 1200
Washington, DC 20036
United States

Allen Blackman

Inter-American Development Bank (IDB) ( email )

1300 New York Avenue NW
Washington, DC 20577
United States

Thomas P. Lyon

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI MI 48109
United States
734-615-1639 (Phone)

Urvashi Narain

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
126
Abstract Views
827
rank
226,565
PlumX Metrics