Environmental regulatory efficacy in India: An inter-state comparison

Abstract

In India industrial pollution is regulated at two levels: the centre and the state. This two tier regulatory structure results in a difference in the efficacy of environmental regulation among the Indian states. Literature exploring the policy debate around the inter-state efficacy of the environmental regulation in India, however, is sparse. This paper utilises principal component analysis to construct an environmental regulatory efficacy index to show an inter-state disparity in the efficacy of environmental regulation in India. It develops an environmental regulatory policy model to categorise the existing Indian regulatory strategies to control industrial pollution. Findings of the environmental regulatory efficacy index are matched with the environmental regulatory policy model to show that a proactive regulatory strategy improves the efficacy of environmental regulation. Policy discussion recommends the need to integrate the environmental policy with the economic policy and suggests diligent utilisation of funds to improve the efficacy of environmental regulation. � World Scientific Publishing Europe Ltd.