Controlling industrial pollution : a new paradigm

The authors call for a revised model for the regulation of industrial pollution. They think the traditional emphasis on appropriate instruments, while ultimately correct, is premature, because agencies in most developing countries have insufficient information and burdensome transaction costs to implement any instruments comprehensively. Once regulators have better information, more integrated information systems, more capacity for setting priorities, and a stronger public mandate, it will not be difficult for them to manage pollution more cost-effectively. Overhasty production of market-based instruments will not work and will probably discredit those regulatory tools. Rather, the new model of regulation should relegate regulators to their proper place in the scheme of things. The state should play a role in regulating pollution externalities, but should also recognize the role of the community and the market. In the authors'view, appropriate regulation in developing countries should incorporate five key features, namely, it should foster a climate of information intensity, encourage community environmental education, allow variations in regulations in different communities, initiate pilot projects and build larger programs later, and fashion adaptive regulatory instruments that both counter environmental degradation and minimize disruption for investors.Health Monitoring&Evaluation,Environmental Economics&Policies,Water and Industry,Public Health Promotion,Decentralization,ICT Policy and Strategies,Urban Services to the Poor,Environmental Economics&Policies,Water and Industry,Health Monitoring&Evaluation

Public Disclosure of Industrial Pollution: The PROPER Approach for Indonesia?

This paper evaluates the effectiveness of the Program for Pollution Control Evaluation and Rating (PROPER) in Indonesia. PROPER, the first major public disclosure program in the developing world, was launched in June 1995; though it collapsed in 1998 with the Asian financial crisis, it is currently being revived. There have been claims of success for this pioneering scheme, yet little formal analysis has been undertaken. We analyze changes in emissions concentrations (mg/L) using panel data techniques with plant-level data for participating firms and a control group. The results show that there was indeed a positive response to PROPER, especially among firms with poor environmental compliance records. The response was immediate, and firms pursued further emissions reductions in the following months. The total estimated reductions in biochemical oxygen demand (BOD) and chemical oxygen demand (COD) were approximately 32%.environmental policy, pollution control, public disclosure, Asia, Indonesia

How Do Public Disclosure Pollution Control Programs Work? Evidence from Indonesia

Although a growing body of evidence suggests that publicly disclosing information about plants’ environmental performance can motivate emissions reductions, this phenomenon remains poorly understood. To help fill this gap, this paper presents original data from a survey of plants participating in the Program for Pollution Control, Evaluation and Rating (PROPER), Indonesia’s widely-acclaimed public disclosure program. These data suggest that a key means by which PROPER spurs abatement is improving factory managers’ information about their own plants’ emissions and abatement opportunities. This finding contrasts with the prevailing view in the literature that public disclosure enhances pressures to abate placed on firms by external agents such as community groups and shareholders. But our data also suggest that PROPER’s "environmental audit" effect operates in concert with external pressures. Therefore, simply supplying new information to plant managers without making that information public may not be sufficient to motivate significant abatement

Program-based pollution control management : the Indonesian PROKASIH program

In 1989, Indonesia's Minister for Population and the Environment introduced its"Clean River"Program (PROKASIH). The program's purpose is to improve water quality by reducing pollution emmissions. Though participation is not entirely voluntary, compliance with the terms of the agreement signed by the plants is not legally binding. Both total biological oxygen demand (BOD) discharges and pollution intensity from PROKASIH plants fell significantly during the period analyzed. However, plant performance varied widely and the overall improvement was achieved through the efforts of a few plants. The program has identified the plants'willingness to practice pollution control. This should prove useful in the allocation of monitoring resources. It is clear that regulators must establish a system for pollution control that reliably analyzes environmental performance. Regulators must confront such issues as self-reporting, information, inspections, compliance assessment, and others. A program-based approach can bring about reliable compliance management and provide the foundation of a river basin environmental management system.Water Conservation,Water and Industry,Sanitation and Sewerage,Environmental Economics&Policies,Public Health Promotion,Water and Industry,Environmental Economics&Policies,Sanitation and Sewerage,TF030632-DANISH CTF - FY05 (DAC PART COUNTRIES GNP PER CAPITA BELOW USD 2,500/AL,Water Conservation

Environmental regulation and public disclosure : the case of PROPER in Indonesia

This book is a remarkable case study of an environmental policy initiative for a national environmental regulatory system in the information age. In 1995 the Indonesian Ministry of Environment took the bold step to launch an environmental disclosure initiative called the Program for Pollution Control, Evaluation and Rating (PROPER). Under PROPER, environmental performance of companies is mapped into a five-color grading scale Gold for excellent, Green for very good, Blue for good, Red for non-compliance, and Black for causing environmental damage. These ratings are then publicly disclosed through a formal press conference and posted on the internet. Not only did this simple rating scheme create a major media buzz and enhanced environmental awareness of the general public, but it also unleashed a wide range of performance incentives that showed how markets with environmental information could function in a developing country setting. The PROPER program is now internationally recognized and continues to serve as a model for many developing countries.

How Do Public Disclosure Pollution Control Programs Work? Evidence from Indonesia

Although a growing body of evidence suggests that publicly disclosing information about plants' environmental performance can motivate emissions reductions, this phenomenon remains poorly understood. To help fill this gap, this paper presents original data from a survey of plants participating in the Program for Pollution Control, Evaluation and Rating (PROPER), Indonesia's widely-acclaimed public disclosure program. These data suggest that a key means by which PROPER spurs abatement is improving factory managers' information about their own plants' emissions and abatement opportunities. This finding contrasts with the prevailing view in the literature that public disclosure enhances pressures to abate placed on firms by external agents such as community groups and shareholders. But our data also suggest that PROPER's "environmental audit" effect operates in concert with external pressures. Therefore, simply supplying new information to plant managers without making that information public may not be sufficient to motivate significant abatement

Public Disclosure of Industrial Pollution: The PROPER Approach for Indonesia?

This paper evaluates the effectiveness of the Program for Pollution Control Evaluation and Rating (PROPER) in Indonesia. PROPER, the first major public disclosure program in the developing world, was launched in June 1995; though it collapsed in 1998 with the Asian financial crisis, it is currently being revived. There have been claims of success for this pioneering scheme, yet little formal analysis has been undertaken. We analyze changes in emissions concentrations (mg/L) using panel data techniques with plant-level data for participating firms and a control group. The results show that there was indeed a positive response to PROPER, especially among firms with poor environmental compliance records. The response was immediate, and firms pursued further emissions reductions in the following months. The total estimated reductions in biochemical oxygen demand (BOD) and chemical oxygen demand (COD) were approximately 32%.environmental policy; pollution control; public disclosure; Asia; Indonesia