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The effect of environmental decentralization on polluting firms in India

Lovo, S. (2018) The effect of environmental decentralization on polluting firms in India. Economic Development and Cultural Change, 67 (1). pp. 55-94. ISSN 1539-2988

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To link to this item DOI: 10.1086/697558


This paper examines the effects of the environmental decentralization fostered by a 2006 reform of the Environmental Impact Assessment process in India. It adopts a triple differences approach that compares treated and untreated sectors across states with different level of environmental enforcement. Results based on firm-level data for the period 1998-2012 show that the reform induced a decrease in firm births in states with stricter enforcement. The findings draw attention on the consequences of great disparities in enforcement capacity in a decentralized environment.

Item Type:Article
Divisions:Arts, Humanities and Social Science > School of Politics, Economics and International Relations > Economics
ID Code:69413
Publisher:The University of Chicago Press


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