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Voluntary environmental regulation in developing countries: Mexico's Clean Industry Program

Publication ,  Journal Article
Blackman, A; Lahiri, B; Pizer, W; Rivera Planter, M; Muñoz Piña, C
Published in: Journal of Environmental Economics and Management
November 1, 2010

Because conventional command-and-control environmental regulation often performs poorly in developing countries, policymakers are increasingly experimenting with alternatives, including voluntary regulatory programs. Research in industrialized countries suggests that such programs are sometimes ineffective, because they mainly attract relatively clean participants free-riding on unrelated pollution control investments. We use plant-level data on more than 100,000 facilities to analyze the Clean Industry Program, Mexico's flagship voluntary regulatory initiative. We seek to identify the drivers of participation and to determine whether the program improves participants' environmental performance. Using data from the program's first decade, we find that plants recently fined by environmental regulators were more likely to participate, but that after graduating from the program, participants were not fined at a substantially lower rate than nonparticipants. These results suggest that although the Clean Industry Program attracted dirty plants under pressure from regulators, it did not have a large, lasting impact on their environmental performance. © 2010 Elsevier Inc.

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Published In

Journal of Environmental Economics and Management

DOI

EISSN

1096-0449

ISSN

0095-0696

Publication Date

November 1, 2010

Volume

60

Issue

3

Start / End Page

182 / 192

Related Subject Headings

  • Agricultural Economics & Policy
  • 3801 Applied economics
  • 1402 Applied Economics
  • 1401 Economic Theory
  • 0502 Environmental Science and Management
 

Citation

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Blackman, A., Lahiri, B., Pizer, W., Rivera Planter, M., & Muñoz Piña, C. (2010). Voluntary environmental regulation in developing countries: Mexico's Clean Industry Program. Journal of Environmental Economics and Management, 60(3), 182–192. https://doi.org/10.1016/j.jeem.2010.05.006
Blackman, A., B. Lahiri, W. Pizer, M. Rivera Planter, and C. Muñoz Piña. “Voluntary environmental regulation in developing countries: Mexico's Clean Industry Program.” Journal of Environmental Economics and Management 60, no. 3 (November 1, 2010): 182–92. https://doi.org/10.1016/j.jeem.2010.05.006.
Blackman A, Lahiri B, Pizer W, Rivera Planter M, Muñoz Piña C. Voluntary environmental regulation in developing countries: Mexico's Clean Industry Program. Journal of Environmental Economics and Management. 2010 Nov 1;60(3):182–92.
Blackman, A., et al. “Voluntary environmental regulation in developing countries: Mexico's Clean Industry Program.” Journal of Environmental Economics and Management, vol. 60, no. 3, Nov. 2010, pp. 182–92. Scopus, doi:10.1016/j.jeem.2010.05.006.
Blackman A, Lahiri B, Pizer W, Rivera Planter M, Muñoz Piña C. Voluntary environmental regulation in developing countries: Mexico's Clean Industry Program. Journal of Environmental Economics and Management. 2010 Nov 1;60(3):182–192.
Journal cover image

Published In

Journal of Environmental Economics and Management

DOI

EISSN

1096-0449

ISSN

0095-0696

Publication Date

November 1, 2010

Volume

60

Issue

3

Start / End Page

182 / 192

Related Subject Headings

  • Agricultural Economics & Policy
  • 3801 Applied economics
  • 1402 Applied Economics
  • 1401 Economic Theory
  • 0502 Environmental Science and Management