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2008-04-08 | EfD Discussion Paper

What Kinds of Firms Are More Sensitive to Public Disclosure Programs for Pollution Control? The Case of Indonesia’s PROPER Program

García, Jorge H, Shakeb Afsah and Thomas Sterner. 2008. “What Kinds of Firms Are More Sensitive to Public Disclosure Programs for Pollution Control? The Case of Indonesia’s PROPER Program.” EfD Discussion Paper 08.
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Analysis of the differences in firms’ responsiveness to PROPER (Indonesia’s successful public disclosure program for industrial pollution control) showed that foreign-owned firms and firms in densely populated areas were more likely to respond to public environmental ratings. Firms with bad environmental performances felt pressure to improve, but this incentive diminished after the initial abatement steps.