1. The Development Economics Research Group The World Bank June 2001

2. Six Years of Collaboration Philippines China Mexico Colombia India Brazil Indonesia

3. The Development Economics Research Group The World Bank June 2001

4. Regulators The Law Plants Regulatory Standard Traditional regulatory model

5. But in DCs, environmental regulator have difficulties Limited Human and Technical Resources Limited Information and Analytical Capacity Little Political Support

6. A standard conclusion…. There is nothing the regulator can do. And polluters have a good time.

7. A standard conclusion…. There is nothing the regulator can do. And polluters have a good time. Another standard conclusion…. The country will have to reach higher levels of income before seeing the environment improving.

8. Challenges these standard conclusions: It does not have to be like that.

9. Three Approaches That Work (Without Sacrificing Growth) Pollution Charges / Economic incentives Public Disclosure Environmental Management

10. Public Disclosure Systems Indonesia Philippines Mexico Current India

11. NGOs Plants Community Informal Regulation Elements Power Social Norms Negotiations

12. Plants Elements Reputation Credit Profits Consumers Investors Markets Markets as Regulators

13. Bad News 0 10000 20000 30000 40000 50000 60000 Date Stock Price in Mexican Pesos Mexico: Government fines Kimberly-Clark for a water pollution violation. 5/18/925/20/925/22/925/26/925/28/926/01/926/05/926/09/926/11/926/15/926/17/92

14. Good News 10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00 50.00 55.00 60.00 Date Stock Price in Philippine Pesos Philippines: Regulatory authority highlights San Miguel Corporation’s environmental commitment and the installation of pollution control equipment. 1/25/911/31/912/06/912/18/912/22/912/26/913/06/913/12/913/18/913/22/912/12/91

15. Some Impacts of Public Information Citizens NGO’s ConsumersInvestors u Media Pressure u Reputation u Personal Contact u Demonstrations u Direct Negotiations u Political Pressure u Product Choices u Price Sensitivity u Lending Liability u Stock Valuation

16. Chemical Release Inventories Publicly available (publications; online) Focus on toxics, not regulated pollutants Provide detail on releases, but not risks Include a broad spectrum of toxicity Take no position on environmental impact Leave interpretation to others –e.g., www.scorecard.org

17. Interpreting the US Toxic Release Inventory

18. Toxic Polluters in Baltimore South Baltimore

19. FMC Corp Benjamin Franklin Middle School Who’s Next Door?

20. 1996 Rankings: Major Chemical Releases or Waste Generation at This Facility* In 1996, this facility ranked in the top 20% of all facilities in the US in terms of  cancer hazards In 1996, this facility ranked in the top 20% of all facilities in the state in terms of  air releases of suspected gastrointestinal or liver toxicants  air releases of suspected respiratory toxicants  air releases of suspected skin or sense organ toxicants  total air releases FMC’s Plant

22. FMC’s Response to TRI? Toxic Releases, 1988-1996 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 19881990199219941996 Lbs

23. A+A+ B D F A Indonesia’s PROPER BAPEDAL’s Five-Color System

24. GREEN BLUE RED BLACK No pollution control effort, Serious environmental damages Clean technology, waste minimization, pollution prevention Efforts don’t meet standards Efforts meet minimum standards Above standards & good maintenance, housekeeping GOLD PERFORMANCE CRITERIA PERFORMANCE LEVELS

25. Very Good Compliant Non-Compliant Very Poor PROPER: FIRST RATINGS

26. -100 -80 -60 -40 -20 0 20 40 60 80 PROPER RATINGS: % CHANGE AFTER 18 MONTHS

27. Jun-95Dec-95Dec-96Jun-95Dec-95Dec-96 32%39% 47% 62% 58% 47% Green factories increased from 4 (2%) to 7 (4%) Black factories decreased from 6 (3%) to 3 (3%) Overall compliance rate increased from 34% to  50% Average BOD Conc. (187 fac.) 154 mg/L 19951996 268 mg/L 43% Reductio n Impact of PROPER on Ratings and Pollution Blue & GreenRed & Black

28. PHILIPPINES ECOWATCH RESULTS ECOWATCH RATINGS World Class Very Good Compliant Non-Compliant Very Poor APRIL 1997NOVEMBER 1998

29. 3 Broad Results The conventional policy discussion focuses on State/Factory interaction as determinant of performance. This discussion is too narrow. Interaction and pressure of various agents explain a plant environmental performance: regulators, communities, markets. Communities and markets need timely and accurate information to play their role.

30. State Markets Community The New Model: Multiple Agents, Multiple Incentives

31. Focus on Information Products Orchestrate, Don’t Dictate Increase Community Involvement Learn From Policy Experiments New Approaches to Pollution Control Multiple Agents, Multiple Incentives

32. For More Information: www.worldbank.org/nipr

33. International Workshop on Public Information Disclosure Jiangsu EPB The World Bank Nanjing, June 21-22, 2001

34. Implementation Issues Selection of Polluters Contents Performance Benchmarks Rule of Aggregation Data Collection and Verification Disclosure Strategy