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Growth in developing countries has improved living standards of millions, but has led to high pollution concentrations and serious public health damages. Market-based environmental regulation can reduce the costs of pollution reduction and thus transform the trade-off between environmental quality and growth. This project measures the effects of a pilot emissions trading system (ETS) for particulate matter on plant emissions and abatement costs using a randomised-controlled trial design implemented jointly with environmental regulators in three Indian states. This project is the first ETS in a developing country and the first rigourous randomised controlled trial of an ETS.
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