Information Disclosure Information Disclosure in a Web of in a Web of

Environmental Environmental Regulatory MechanismsRegulatory Mechanisms

Wanxin LiWanxin LiVirginia TechVirginia Tech

November 15, 2005November 15, 2005

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A Web of Pollution Control A Web of Pollution Control Instruments (I)Instruments (I)

Preventive Preventive Three synchronization;Three synchronization;

Environmental Impact Assessment;Environmental Impact Assessment;

Cleaner production;Cleaner production;

Circular economy. Circular economy.

Direct regulation Direct regulation I (administrative)I (administrative)

Limited time treatment;Limited time treatment;

Discharge permit. Discharge permit.

Direct regulation Direct regulation II (economic) II (economic)

Pollution levy/Pollution Pollution levy/Pollution discharge fee. discharge fee.

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A Web of Pollution Control A Web of Pollution Control Instruments (II)Instruments (II)

Incentive Incentive mechanism I mechanism I (economic) (economic)

Tradable emissions permit. Tradable emissions permit.

Incentive Incentive mechanism II mechanism II (information) (information)

Color rating & disclosing of Color rating & disclosing of environmental performance of firms;environmental performance of firms;

Disclosing important pollution Disclosing important pollution sources. sources.

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A Web of Pollution Control A Web of Pollution Control Instruments (III)Instruments (III)

Incentive Incentive mechanisms III mechanisms III (political)(political)

Comprehensive evaluation of city Comprehensive evaluation of city environmental protection;environmental protection;

Environmental responsibility system;Environmental responsibility system;

Environmental protection model Environmental protection model city/township/village;city/township/village;

National model eco-park, eco-village. National model eco-park, eco-village.

Voluntary Voluntary approaches approaches

Nationally environmental Nationally environmental friendly enterprises;friendly enterprises;

ISO14000. ISO14000.

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Disclose or Not? A Value JudgmentDisclose or Not? A Value Judgment

• To protect industry, government could To protect industry, government could choose not to disclose environmental choose not to disclose environmental information: Hohhot.information: Hohhot.

• To improve the capacity of EPBs to To improve the capacity of EPBs to manage industry and better put them on manage industry and better put them on defense by disclosing and allying with defense by disclosing and allying with the public: Zhenjiang. the public: Zhenjiang.

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Resources at Disposal of EPBs for Resources at Disposal of EPBs for Disclosure MatterDisclosure Matter

• Administrative capacityAdministrative capacity

• Technical support Technical support

• A policy entrepreneur advocating for A policy entrepreneur advocating for disclosure and following throughdisclosure and following through

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Environmental InformationEnvironmental Information

ZhenjiangZhenjiang HohhotHohhot

EPB (administrative) EPB (administrative) 7070 2121

Monitoring station Monitoring station 6060 8181

Professional staff (%)Professional staff (%) 9090 7070

Real time mobile monitorReal time mobile monitor 44 00

Compliance & Compliance & enforcement officeenforcement office

2020 33

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Technical SupportTechnical Support

• ZhenjiangZhenjiang

Nanjing University only 80km awayNanjing University only 80km away

A doctoral student came 2-3 times a weekA doctoral student came 2-3 times a week

• HohhotHohhot

CRAES in Beijing 669km awayCRAES in Beijing 669km away

CRAES expert was loaded with other tasksCRAES expert was loaded with other tasks

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Advocate for DisclosureAdvocate for Disclosure

• ZhenjiangZhenjiang

Director of EPB used all possible channels to Director of EPB used all possible channels to spread the word among government agencies;spread the word among government agencies;

Pamphlets distributed to the public.Pamphlets distributed to the public.

• HohhotHohhot

Disclosure was contracted to HRAES, nobody Disclosure was contracted to HRAES, nobody of the implementation team reached out to of the implementation team reached out to Hohhot city governmentHohhot city government

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After Pilot DisclosureAfter Pilot Disclosure

• Industry: what benefits can we gain Industry: what benefits can we gain from disclosing?from disclosing?

• EPB: how to make use of rating results EPB: how to make use of rating results to pick up “bad apples” and reward good to pick up “bad apples” and reward good ones?ones?

• Public: we are not in the game yet.Public: we are not in the game yet.

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Public environmental awarenessPublic environmental awareness

++ Government credible commitmentGovernment credible commitment

++ EPB enhanced administrative capacityEPB enhanced administrative capacity

++ Industry fear for public & private enforcementIndustry fear for public & private enforcement

++ Industry voluntarismIndustry voluntarism

Better Environmental Results?Better Environmental Results?

Where Is Hope? Political, Administrative & Legal, Where Is Hope? Political, Administrative & Legal, Market, and Voluntary Forces ConvergeMarket, and Voluntary Forces Converge

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Environmental Information Disclosure Environmental Information Disclosure Can Potentially Establish Webs of Can Potentially Establish Webs of Dialogue, Align Interests, and Build Dialogue, Align Interests, and Build Environmental Consensus among Environmental Consensus among Stakeholders. Stakeholders.

So It Could Bring the Hope of Better So It Could Bring the Hope of Better Environmental Results in China Environmental Results in China Closer to Us!Closer to Us!

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Thank you!Thank you!

Comments? Questions?Comments? Questions?