Emissions Trading as an Environmental Innovation in India: Measuring the Policy Impact on Emissions and Abatement Costs

  • Blog Post Date 31 March, 2012
  • IGC Research on India
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Anant Sudarshan

Energy Policy Institute at Chicago


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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