IDEAS home Printed from https://ideas.repec.org/a/wsi/jeapmx/v19y2017i03ns1464333217500168.html
   My bibliography  Save this article

Environmental Regulatory Efficacy in India: An Inter-State Comparison

Author

Listed:
  • Aditi Jamalpuria

    (Economics Group, Indian Institute of Management Calcutta, Kolkata 700104, West Bengal, India)

Abstract

In India industrial pollution is regulated at two levels: the centre and the state. This two tier regulatory structure results in a difference in the efficacy of environmental regulation among the Indian states. Literature exploring the policy debate around the inter-state efficacy of the environmental regulation in India, however, is sparse. This paper utilises principal component analysis to construct an environmental regulatory efficacy index to show an inter-state disparity in the efficacy of environmental regulation in India. It develops an environmental regulatory policy model to categorise the existing Indian regulatory strategies to control industrial pollution. Findings of the environmental regulatory efficacy index are matched with the environmental regulatory policy model to show that a proactive regulatory strategy improves the efficacy of environmental regulation. Policy discussion recommends the need to integrate the environmental policy with the economic policy and suggests diligent utilisation of funds to improve the efficacy of environmental regulation.

Suggested Citation

  • Aditi Jamalpuria, 2017. "Environmental Regulatory Efficacy in India: An Inter-State Comparison," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 19(03), pages 1-28, September.
    • Handle: RePEc:wsi:jeapmx:v:19:y:2017:i:03:n:s1464333217500168
    DOI: 10.1142/S1464333217500168
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S1464333217500168
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S1464333217500168?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Henderson, J Vernon, 1996. "Effects of Air Quality Regulation," American Economic Review, American Economic Association, vol. 86(4), pages 789-813, September.
    2. Fernando Broner & Paula Bustos & Vasco Carvalho, 2011. "Sources of comparative advantage in polluting industries," Economics Working Papers 1331, Department of Economics and Business, Universitat Pompeu Fabra, revised Dec 2019.
    3. Esther Duflo & Michael Greenstone & Rohini Pande & Nicholas Ryan, 2018. "The Value of Regulatory Discretion: Estimates From Environmental Inspections in India," Econometrica, Econometric Society, vol. 86(6), pages 2123-2160, November.
    4. Arik Levinson, 2001. "An Industry-Adjusted Index of State Environmental Compliance Costs," NBER Chapters, in: Behavioral and Distributional Effects of Environmental Policy, pages 131-158, National Bureau of Economic Research, Inc.
    5. Sacchidananda Mukherjee & Vinish Kathuria, 2006. "Is economic growth sustainable? Environmental quality of Indian States after 1991," International Journal of Sustainable Development, Inderscience Enterprises Ltd, vol. 9(1), pages 38-60.
    6. Lenka Hudrliková, 2013. "Composite Indicators as a Useful Tool for International Comparison: The Europe 2020 Example," Prague Economic Papers, Prague University of Economics and Business, vol. 2013(4), pages 459-473.
    7. Eli Berman & Linda T. M. Bui, 2001. "Environmental Regulation And Productivity: Evidence From Oil Refineries," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 498-510, August.
    8. Susmita Dasgupta & Ashoka Mody & Subhendu Roy & David Wheeler, 2001. "Environmental Regulation and Development: A Cross-country Empirical Analysis," Oxford Development Studies, Taylor & Francis Journals, vol. 29(2), pages 173-187.
    9. Wayne B. Gray, 1997. "Manufacturing Plant Location: Does State Pollution Regulation Matter?," NBER Working Papers 5880, National Bureau of Economic Research, Inc.
    10. Virginia D. McConnell & Robert M. Schwab, 1990. "The Impact of Environmental Regulation on Industry Location Decisions: The Motor Vehicle Industry," Land Economics, University of Wisconsin Press, vol. 66(1), pages 67-81.
    11. Stefania Lovo, 2014. "The effect of environmental decentralization on polluting industries in India," GRI Working Papers 143, Grantham Research Institute on Climate Change and the Environment.
    12. Carl Pasurka, 2008. "Perspectives on Pollution Abatement and Competitiveness: Theory, Data, and Analyses," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 2(2), pages 194-218, Summer.
    13. Costantini, Valeria & Crespi, Francesco, 2008. "Environmental regulation and the export dynamics of energy technologies," Ecological Economics, Elsevier, vol. 66(2-3), pages 447-460, June.
    14. Levinson, Arik, 1996. "Environmental regulations and manufacturers' location choices: Evidence from the Census of Manufactures," Journal of Public Economics, Elsevier, vol. 62(1-2), pages 5-29, October.
    15. Mukherjee, Sacchidananda & Kathuria, Vinish, 2006. "Is Economic Growth Sustainable? Environmental Quality of Indian States Post 1991," MPRA Paper 6473, University Library of Munich, Germany.
    16. Claire Brunel & Arik Levinson, 2013. "Measuring Environmental Regulatory Stringency," Working Papers gueconwpa~13-13-02, Georgetown University, Department of Economics.
    17. Wolfgang Keller & Arik Levinson, 2002. "Pollution Abatement Costs and Foreign Direct Investment Inflows to U.S. States," The Review of Economics and Statistics, MIT Press, vol. 84(4), pages 691-703, November.
    18. Matthew A. Cole & Robert J. R. Elliott, 2003. "Do Environmental Regulations Influence Trade Patterns? Testing Old and New Trade Theories," The World Economy, Wiley Blackwell, vol. 26(8), pages 1163-1186, August.
    19. World Bank, 2006. "India - Strengthening Institutions for Sustainable Growth : Country Environmental Analysis," World Bank Publications - Reports 19628, The World Bank Group.
    20. David Pearce & Charles Palmer, 2001. "Public and private spending for environmental protection: a cross-country policy analysis," Fiscal Studies, Institute for Fiscal Studies, vol. 22(4), pages 403-456, December.
    21. M A Cole & R J R Elliott, 2003. "Do Environmental Regulations Influence Trade Patterns? Testing New and Old Trade Theories," Economics Discussion Paper Series 0310, Economics, The University of Manchester.
    22. Selim Cagatay & Hakan Mihci, 2003. "Industrial Pollution, Environmental Suffering And Policy Measures: An Index Of Environmental Sensitivity Performance (Iesp)," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 5(02), pages 205-245.
    23. Cees Van Beers & Jeroen C. J. M. Van Den Bergh, 1997. "An Empirical Multi‐Country Analysis of the Impact of Environmental Regulations on Foreign Trade Flows," Kyklos, Wiley Blackwell, vol. 50(1), pages 29-46, February.
    24. Magnani, Elisabetta, 2000. "The Environmental Kuznets Curve, environmental protection policy and income distribution," Ecological Economics, Elsevier, vol. 32(3), pages 431-443, March.
    25. Yuquing Xing & Charles Kolstad, 2002. "Do Lax Environmental Regulations Attract Foreign Investment?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 21(1), pages 1-22, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Huang, Shi-Zheng, 2022. "Do green financing and industrial structure matter for green economic recovery? Fresh empirical insights from Vietnam," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 61-73.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wilhelm Althammer & Erik Hille, 2016. "Measuring climate policy stringency: a shadow price approach," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 23(4), pages 607-639, August.
    2. Albrizio, Silvia & Kozluk, Tomasz & Zipperer, Vera, 2017. "Environmental policies and productivity growth: Evidence across industries and firms," Journal of Environmental Economics and Management, Elsevier, vol. 81(C), pages 209-226.
    3. Randy A. Becker, 2011. "On Spatial Heterogeneity in Environmental Compliance Costs," Land Economics, University of Wisconsin Press, vol. 87(1), pages 28-44.
    4. Leiter, Andrea M. & Parolini, Arno & Winner, Hannes, 2010. "Environmental Regulation and Investment: Evidence from European Country-Industry Data," Working Papers in Economics 2010-1, University of Salzburg, revised 13 Jan 2010.
    5. Hille, Erik & Althammer, Wilhelm, 2015. "Measuring climate policy stringency: A shadow price approach using energy prices," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112804, Verein für Socialpolitik / German Economic Association.
    6. Leiter, Andrea M. & Parolini, Arno & Winner, Hannes, 2011. "Environmental regulation and investment: Evidence from European industry data," Ecological Economics, Elsevier, vol. 70(4), pages 759-770, February.
    7. Randy A. Becker, 2011. "On Spatial Heterogeneity in Environmental Compliance Costs," Land Economics, University of Wisconsin Press, vol. 87(1), pages 28-44.
    8. Wolfgang Keller & Arik Levinson, 1999. "Environmental Compliance Costs and Foreign Direct Investment Inflows to U.S. States," NBER Working Papers 7369, National Bureau of Economic Research, Inc.
    9. Wayne B. Gray & Ron Shadbegian, 2024. "When Do Firms Shift Production across States to Avoid Environmental Regulation?," Land Economics, University of Wisconsin Press, vol. 100(3), pages 443-457.
    10. Biing-Shiunn Yang & Chao-Cheng Mai, 2013. "The impact of uncertain environmental regulatory policy on optimal plant location and anti-pollution technology selection," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(3), pages 753-769, June.
    11. Saussay, Aurélien & Zugravu-Soilita, Natalia, 2023. "International production chains and the pollution offshoring hypothesis: An empirical investigation," Resource and Energy Economics, Elsevier, vol. 73(C).
    12. Edward Manderson & Richard Kneller, 2012. "Environmental Regulations, Outward FDI and Heterogeneous Firms: Are Countries Used as Pollution Havens?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 51(3), pages 317-352, March.
    13. Millimet, Daniel L. & Roy, Jayjit, 2011. "Three New Empirical Tests of the Pollution Haven Hypothesis When Environmental Regulation is Endogenous," IZA Discussion Papers 5911, Institute of Labor Economics (IZA).
    14. Somlanare Romuald KINDA & Pascale COMBES MOTEL & Jean-Louis COMBES, 2014. "Do Environmental Policies Hurt Trade Performance?," Working Papers 201404, CERDI.
    15. Andrea M. Leiter & Arno Parolini & Hannes Winner, 2009. "Environmental Regulation and Investment: Evidence from European Industries," Working Papers 2009-04, Faculty of Economics and Statistics, Universität Innsbruck.
    16. Tsurumi Tetsuya & Managi Shunsuke & Hibiki Akira, 2015. "Do Environmental Regulations Increase Bilateral Trade Flows?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(4), pages 1549-1577, October.
    17. Li, Feiyang & Lin, Ziyue & Huang, Liangxiong & Yang, Caiting, 2022. "Environmental regulation and global value chain division position：Analysis based on global transnational data," Energy Policy, Elsevier, vol. 168(C).
    18. Antoine Dechezleprêtre & Misato Sato, 2017. "The Impacts of Environmental Regulations on Competitiveness," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 11(2), pages 183-206.
    19. Lei Wen & Hongbing Li & Xueying Bian, 2024. "Local environmental legislation and employment growth: evidence from Chinese manufacturing firms," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 16917-16955, July.
    20. Wolfgang Keller & Arik Levinson, 2000. "Environmental Regulations and FDI Inflows to U.S. States," Working Papers gueconwpa~00-00-06, Georgetown University, Department of Economics.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:jeapmx:v:19:y:2017:i:03:n:s1464333217500168. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/jeapm/jeapm.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.