Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/216387 
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 13075
Publisher: 
Institute of Labor Economics (IZA), Bonn
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.
Subjects: 
place-based economic policies
agglomeration
deforestation
JEL: 
Q53
O40
Q56
H54
Document Type: 
Working Paper

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