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NIPR newsletter, August 1999

1- Public Information Disclosure Grows Worldwide Roots
2 - New NIPR Features: A New Targeted Search Service and Language Options
3- "Readings in the Field - A Bibliography on Natural Resources and
Environmental Economics"
4- Four from the Vault - Research Papers on Pollution Havens
5 - World Bank Online Discussion on Environmental Sustainability
6- More of OnTheNet including "Soviet Pollution", and more EPA websites and
conference information

Dear Friend:

The NIPR team is pleased to inform you about new developments in the
world to implement public information disclosure programs --  Mexico and India
recently launched initatives to improve environmental behavior by polluting
industries.  NIPR has also improved its search engine and added a language
option which allows visitors to translate complete pages on the site into
several different languages.  We have added four research papers on the
of pollution havens, and have added an extensive bibliography on environmental
economics.  Finally, we have updated our ongoing features on environmental
links, EPA websites and conference information.  We hope you will find
these new
additions interesting and useful.

1 - Public Information Disclosure Grows Worldwide Roots

The public information disclosure initiatives pioneered by environmental
regulators in Indonesia and the Philippines, with assistance from the NIPR
are influencing regulators and activists in locations throughout the
world.  Witness two recent developments in Mexico and India.  Procuraduria
Federal de Proteccion al Ambiente (PROFEPA), Mexico's environmental
agency, announced that it will begin to publish information on the
performance of 3,000 industries to provide incentives for them to reduce their
contamination.  PROFEPA will provide these industries with rankings from 0% to
100% (100% representing the top score), and will include its
recommendations on

how to achieve acceptable environmental performance.  Among the criteria that
PROFEPA uses to assess performance are an industry's handling, storage, and
transport of dangerous wastes, atmospheric contamination and other high risk
activities.  The agency says its goal is to push industries to reach the 100%
rankings within two years.  PROFEPA plans to make its rankings available
its website (http://www.profepa.gob.mx) in the future.  NIPR will present new
materials and links as they become available.

The Centre for Science and the Environment (CSE) is a New Delhi-based NGO that
has produced influential environmental reports about the state of India's
environment since the early 1980s.  Its most recent effort is the Green Rating
Project which rates Indian companies on the basis of environmental
Selected to implement the project in late 1997 by the government and the U.N.
Development Programme, CSE has rated 31 pulp and paper facilities across the
country.  The ratings, ratings methodology, project analysis and background
now online.


2 - New NIPR Features: A New Targeted Search Service and Language Options

NIPR has launched a new targeted search service for finding materials on
industrial pollution control and regulation issues across the Internet.  Most
search engines, like Alta Vista or Hotbot, try to index the entire Internet --
good and bad, useful and useless, appropriate and inappropriate.  NIPR's
targeted search service indexes sites that have been already identified by our
team as useful and appropriate for our topic.  Targeted search results
include a
brief description from each item to help viewers identify the items they
want to
pursue.  Finally, unlike most other Internet searches, the NIPR targeted
returns results from articles stored as PDF files -- where some of the
Internet's most valuable information can be found.  Please try the search and
let us know what you think.


NIPR has also instituted a new feature -- language options.  You may receive
translations of complete pages on NIPR in Spanish, French, German, Italian or
Portuguese via the Alta Vista translations software conveniently located on


3- "Readings in the Field - A Bibliography on Natural Resources and
Environmental Economics"

Alexander Pfaff of Columbia and Robert Stavins of Harvard have put together an
impressive bibliography of almost 1,000 references on natural resources and
environmental economics.  "Readings in the Field" is an invaluable resource
economists and environmentalists.  Among the subjects included in the
section on
Environmental Economics are: The Theory of Pollution Control from an
overview to
efficiency and externalities; Numerical Measures from measuring environmental
risk to measuring the benefits of improvement; to Policy with an overview of
instrument choices and designs.  We want to express our appreciation to

Professors Stavins and Pfaff for their permission to make this document
available on NIPR.


4- Four from the Vault - Research Papers on Pollution Havens

Though not recent papers, NIPR has reached back into its archives to put
four previously unavailable research papers on pollution havens.  The
havens" hypothesis suggests industries in very polluting sectors will leave
highly regulated and environmentally sensitive industrialized economies for
relatively unregulated and poorer developing economies.  The following papers
examine or test the "hypothesis".

Muthukumara Mani and David Wheeler note that with three decades of rapid
economic growth in developing countries along with rising environmental
awareness in industrialized economies, many perceive a gap in "environmental
pricing" between the two economies since the 1970s.  According to the
havens hypothesis, the result should have been more rapid growth of dirty
industries in unregulated economies which were open to international trade.
Their cross-country analysis found a pattern of evidence which does seem
consistent with the pollution havens story.  But their evidence also showed
pollution haven effects have not had major significance, for a number of
reasons.  Among the most important is evidence that environmental regulation
increases continuously with income.  Any tendency toward formation of a
pollution haven is self-limiting, because economic growth brings
pressure to bear on polluters through increased regulation.


Prepared as a background paper to the 1992 World Development Report, Robert
Lucas, David Wheeler and Hemamala Hettige in their paper "Economic
Environmental Regulation, and the International Migration of Toxic Industrial
Pollution, 1960-88" conducted a general test of the displacement hypothesis,
developing time series estimates of manufacturing pollution intensity for a
large sample of developed and developing countries between 1960 and 1988.
Previous studies had asked whether environmental controls imposed in the
industrialized economies were diverting investments in pollution intensive
activities off-shore, but had not fully addressed other issues such as
technology transfers and distribution changes.  Building on this, the authors
analysis yielded a number of observations such as pollution intensity had
most rapidly in developing economies that were relatively closed to world
forces, and stricter regulation of pollution-intensive production in the OECD
appears to have led to significant locational displacement with consequent
acceleration of industrial pollution intensity in developing countries.


Gunnar Eskeland and Ann Harrison, in their paper "Moving to Greener Pastures?
Multinationals and the Pollution Haven Hypothesis" used data from four
developing countries (Côte d'Ivoire, Mexico, Morocco and Venezuela) to examine
the pattern of foreign investment and found almost no evidence that foreign

investors were concentrated in "dirty" sectors.  They also examined the
of multinationals doing business in these four countries, testing whether
was any tendency for foreign firms to pollute more or less than their
host-country counterparts.  To do this, they used consumption of energy and
"dirty fuels" as a proxy for pollution intensity.  They found that foreign
plants in these four developing countries were significantly more
energy-efficient and used cleaner types of energy than their domestic
counterparts.  Eskeland and Harrison did an analysis of U.S. outbound
between 1982 and 1994.  They rejected the hypothesis that the pattern of U.S.
foreign investment is skewed toward industries in which the cost of pollution
abatement is high.  The author's found almost no evidence to suggest that
investors in developing countries were fleeing environmental costs at home.
Instead, their evidence suggests that foreign-owned plants in four developing
countries were less polluting than comparable domestic plants.


In "Trade Policy and Industrial Pollution in Latin America: Where are the
Pollution Havens?" Wheeler and Nancy Birdsall challenge the commonly assumed
notion by economists and environmentalists that greater economic "openness"
to increased industrial pollution in developing countries.  The authors argue
that liberalization of trade regimes and increased foreign investment in Latin
America have not been associated with pollution-intensive industrial
development.  From case studies and econometric evidence, Wheeler and Birdsall
conclude that protected economies are more likely to favor pollution intensive
industries, while openness actually encourages cleaner industry through the
importation of developed country pollution standards.


5 - World Bank Online Discussion on Environmental Sustainability

Environmental issues became mainstreamed into the World Bank's developmental
policymaking in the late 1980s, with both the design of environmental projects
and the formulation of guidelines on environmental matters.  But, considering
the magnitude of these issues, the impact of the Bank's programs on
environmental trends in the developing world has been limited and the
record of
its success has been mixed.  From July through the first half of August, the
Bank's Operations Evaluation Department sponsored an online Internet forum to
allow the Bank's staff and its observers an opportunity to provide honest
appraisals of the institution's work on environmental sustainability.  Forum
organizers hope the discussion will provide NGO's with a channel to share
knowledge and anecdotes with Bank, while at the same time help activist
organization gain better insight into the Bank's efforts on the environment.
The forum has stopped, but will resume in November with further discussions.


6- More of OnTheNet including "Soviet Pollution", and more EPA websites and
conference information

We have made a series of link additions that offer new and exciting stories to
what's currently available on NIPR.  These include new websites for several
environmental ministries: Nambia, Brazil and Trinidad and Tobago.  We've also
updated the Conference section, and for the OnTheNet page we have several
interesting features.  Of most note is Gerd Ludwig's photographic expose on
"Soviet Pollution".  Ludwig's stunning photo documentary looks at the
of the former Soviet Union and graphically records the outcome of policies
designed to maximize industrial production at the expense of the  environment
and public health.  Also of interest will be the Greenleaf Publishing website
which specializes in publications about business and environment. Greenleaf
focuses on the changing views and behavioral patterns by the business
on sustainable development.  The most recent edition of its magazine Greener
Management International addresses the financial reasons, short and long-term,
why the business community needs to build partnerships with NGO's.


We hope the new updates on NIPR are useful with regards to your own policy
and research efforts. As always, we welcome your comments and ideas, and we
appreciate the thoughts and suggestions many of our readers have shared
with us.
If you know someone who would be interested in receiving the NIPR newsletter,
feel free to let us know or have them contact us directly. If you wish to no
longer receive our monthly mailings, please let us know by writing David
at dshaman@worldbank.org. Best wishes.

Juna Z. Snow
List Manager
IL. Waste Management 
& Research Center