NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Benjamin G. Hyman

Department of Business Economics and Public Policy
The Wharton School
University of Pennsylvania
3000 Steinberg Hall-Dietrich Hall
3620 Locust Walk
Philadelphia, PA 19104

E-Mail: EmailAddress: hidden: you can email any NBER-related person as first underscore last at nber dot org

NBER Working Papers and Publications

November 2015When do Firms Go Green? Comparing Price Incentives with Command and Control Regulations in India
with Ann Harrison, Leslie Martin, Shanthi Nataraj: w21763
India has a multitude of environmental regulations but a history of poor enforcement. Between 1996 and 2004, India's Supreme Court required 17 cities to enact Action Plans to reduce air pollution through a variety of command-and-control (CAC) environmental regulations. We compare the impacts of these regulations with the impact of changes in coal prices on establishment-level pollution abatement, coal consumption, and productivity growth. We find that higher coal prices reduced coal use within establishments, with price elasticities similar to those found in the US. In addition, higher coal prices are associated with lower pollution emissions at the district level. CAC regulations did not affect within-establishment pollution control investment or coal use, but did impact the extensive mar...
 
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