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Public disclosure of industrial pollution: the PROPER approach for Indonesia?

Published online by Cambridge University Press:  01 December 2007

JORGE H. GARCÍA ,
THOMAS STERNER  and
SHAKEB AFSAH
JORGE H. GARCÍA
Affiliation:
Department of Economics, University of Gothenburg, Gothenburg, Sweden
THOMAS STERNER*
Affiliation:
Department of Economics, University of Gothenburg, Gothenburg, Sweden and Resources for the Future, Washington DC
SHAKEB AFSAH
Affiliation:
Performeks LLC, Bethesda, Maryland, USA
*
*Correspondence to: Thomas Sterner, Department of Economics, University of Gothenburg, PO Box 640 40530, Vasagatan 1, Gothenburg, Sweden. Email: Thomas.sterner@economics.gu.se
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Abstract

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 and conclusive 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 per cent.

Type
Research Article
Information
Environment and Development Economics , Volume 12 , Issue 6 , December 2007 , pp. 739 - 756
Copyright
Copyright © Cambridge University Press 2007

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