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Environmental Regulations, Air and Water Pollution, and Infant Mortality in India

American Economic Review · 2014 · 996 citations · 22 references

TL;DR

The study uses the most comprehensive developing‑country dataset on air and water pollution and environmental regulations to assess India’s environmental policies via a difference‑in‑differences design. The authors employ a difference‑in‑differences approach to analyze the dataset and evaluate the impact of environmental regulations. Air‑pollution regulations improved air quality, but the most effective regulation only produced a modest, statistically insignificant drop in infant mortality, while water regulations showed no measurable benefit, and the results suggest that strong public demand for air quality can drive effective enforcement even in weak institutional settings. JEL codes: I12, J13, O13, Q53, Q58.

Abstract

Using the most comprehensive developing country dataset ever compiled on air and water pollution and environmental regulations, the paper assesses India's environmental regulations with a difference-in-differences design. The air pollution regulations are associated with substantial improvements in air quality. The most successful air regulation resulted in a modest but statistically insignificant decline in infant mortality. In contrast, the water regulations had no measurable benefits. The available evidence leads us to cautiously conclude that higher demand for air quality prompted the effective enforcement of air pollution regulations, indicating that strong public support allows environmental regulations to succeed in weak institutional settings. (JEL I12, J13, O13, Q53, Q58)