Market-friendly regulatory instruments can transform the trade-off between environmental quality and growth, if these instruments are properly designed and implemented,. The benefits of market-friendly regulation mentioned above, of meeting environmental goals and lowering abatement costs, depend on the development of an active emissions market with complete compliance. Piloting a market-friendly emissions scheme as a regulatory experiment in several states, covering critically polluted areas, would therefore provide important proof of the viability of this form of regulation in the Indian context
Pande and coauthors: Limiting the environmental impacts of economic growth
July 2011: Research by Rohini Pande and coauthors from Harvard Kennedy's School show how a market-friendly scheme can reduce particulate emissions from stationary sources and improve human health in India.