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Environmental performance rating and disclosure: China's Green Watch program.
Hua Wang1, Jun Bi, David Wheeler
1Development Research Group, World Bank, 1818 H St., N.W., Washington, DC, USA. hwang1@worldbank.org
Journal of Environmental Management
|May 12, 2004
Summary
China
Area of Science:
- Environmental Economics
- Public Policy
- Environmental Science
Background:
- China faces significant pollution challenges.
- Existing pollution control programs have varying effectiveness.
- Public disclosure of environmental performance is an emerging strategy.
Purpose of the Study:
- To evaluate an incentive-based pollution control program in China.
- To assess the impact of color-coded environmental ratings on firm compliance.
- To understand the role of public disclosure in environmental regulation.
Main Methods:
- Analysis of two municipal pollution disclosure programs in China.
- Comparison of compliance rates before and after program implementation.
- Benchmarking against similar public disclosure programs in Southeast Asia.
Main Results:
- The program utilizes a five-color rating system (green to black) for environmental performance.
- Public dissemination of ratings through media was a key component.
- Significant increases in compliance with pollution regulations were observed, comparable to other nations.
Conclusions:
- Incentives from public disclosure can effectively reduce pollution in China.
- The program shows promise even with limited environmental NGO involvement and public participation.
- Color-coded ratings and media dissemination are effective tools for environmental governance.
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