Information Disclosure in a Web of Environmental Regulatory Mechanisms Wanxin Li Virginia Tech November 15, 2005

2 A Web of Pollution Control Instruments (I) Preventive Three synchronization; Environmental Impact Assessment; Cleaner production; Circular economy. Direct regulation I (administrative) Limited time treatment; Discharge permit. Direct regulation II (economic) Pollution levy/Pollution discharge fee.

3 A Web of Pollution Control Instruments (II) Incentive mechanism I (economic) Tradable emissions permit. Incentive mechanism II (information) Color rating & disclosing of environmental performance of firms; Disclosing important pollution sources.

4 A Web of Pollution Control Instruments (III) Incentive mechanisms III (political) Comprehensive evaluation of city environmental protection; Environmental responsibility system; Environmental protection model city/township/village; National model eco-park, eco-village. Voluntary approaches Nationally environmental friendly enterprises; ISO14000.

5 Disclose or Not? A Value Judgment To protect industry, government could choose not to disclose environmental information: Hohhot.To protect industry, government could choose not to disclose environmental information: Hohhot. To improve the capacity of EPBs to manage industry and better put them on defense by disclosing and allying with the public: Zhenjiang.To improve the capacity of EPBs to manage industry and better put them on defense by disclosing and allying with the public: Zhenjiang.

6 Resources at Disposal of EPBs for Disclosure Matter Administrative capacityAdministrative capacity Technical supportTechnical support A policy entrepreneur advocating for disclosure and following throughA policy entrepreneur advocating for disclosure and following through

7 Environmental Information ZhenjiangHohhot EPB (administrative) 7021 Monitoring station 6081 Professional staff (%) Professional staff (%)9070 Real time mobile monitor Real time mobile monitor40 Compliance & enforcement office 203

8 Technical Support ZhenjiangZhenjiang Nanjing University only 80km away Nanjing University only 80km away A doctoral student came 2-3 times a week A doctoral student came 2-3 times a week HohhotHohhot CRAES in Beijing 669km away CRAES in Beijing 669km away CRAES expert was loaded with other tasks CRAES expert was loaded with other tasks

9 Advocate for Disclosure ZhenjiangZhenjiang Director of EPB used all possible channels to spread the word among government agencies; Director of EPB used all possible channels to spread the word among government agencies; Pamphlets distributed to the public. Pamphlets distributed to the public. HohhotHohhot Disclosure was contracted to HRAES, nobody of the implementation team reached out to Hohhot city government Disclosure was contracted to HRAES, nobody of the implementation team reached out to Hohhot city government

10 After Pilot Disclosure Industry: what benefits can we gain from disclosing?Industry: what benefits can we gain from disclosing? EPB: how to make use of rating results to pick up “bad apples” and reward good ones?EPB: how to make use of rating results to pick up “bad apples” and reward good ones? Public: we are not in the game yet.Public: we are not in the game yet.

11 Public environmental awareness + Government credible commitment + EPB enhanced administrative capacity + Industry fear for public & private enforcement + Industry voluntarism Better Environmental Results? Where Is Hope? Political, Administrative & Legal, Market, and Voluntary Forces Converge

12 Environmental Information Disclosure Can Potentially Establish Webs of Dialogue, Align Interests, and Build Environmental Consensus among Stakeholders. So It Could Bring the Hope of Better Environmental Results in China Closer to Us!

13 Thank you! Comments? Questions?