Third-party environmental auditing

Michael Greenstone

01 March 2012

2

min read

Notes from the Field

IGC Research on India

Explainers

High levels of industrial pollution are a harmful by-product of growth. The Indian state of Gujarat is an industrial powerhouse with about 5% of the Indian population, but 9% of India’s registered manufacturing employment and 19% of output. This growth has been accompanied by a degradation of air and water quality. This project focusses on the response of polluting plants to the third-party audit reforms. It alters the market structure for environmental audits of industrial plants to incentivise accurate reporting and finds positive impact of altered structure on reduction of pollution.

Michael Greenstone

University of Chicago

Yale University

Massachusetts Institute of Technology

Yale University

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