Governance

Third-party environmental auditing

  • Blog Post Date 01 March, 2012
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Esther Duflo

Massachusetts Institute of Technology

eduflo@mit.edu

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.

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