The Ecological Impact of Place-Based Economic Policies

Teevrat Garg () and Ajay Shenoy
Additional contact information
Teevrat Garg: University of California, San Diego

No 13075, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Does economic development have an unavoidable ecological cost? We examine the ecological impacts of one of India's signature place-based economic policies involving massive tax benefits for new industrial and infrastructure development following the creation of the new state of Uttarakhand. The policy, which had an explicit pro-environment mandate, resulted in no meaningful change in local forest cover. Our results suggest that even in settings with low levels of enforcement, place-based economic policies with pro-environment mandates can achieve sizeable economic expansion without major ecological costs.

Keywords: deforestation; place-based economic policies; agglomeration (search for similar items in EconPapers)
JEL-codes: H54 O40 Q53 Q56 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2020-03
New Economics Papers: this item is included in nep-agr, nep-env and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published - published in: American Journal of Agricultural Economics, 2021, 103 (4), 1239-1250

Downloads: (external link)
https://docs.iza.org/dp13075.pdf (application/pdf)

Related works:
Journal Article: The Ecological Impact of Place‐Based Economic Policies (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp13075

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().