agec5001 pollution info policies

watched vs. unwatched

the EPA only checks air pollution once a week, their schedule is also public & predictable

→ “do polluters behave differently on watched vs. unwatched ways?”

the pollution gap

facilities will create more pollutants when they think no one is watching (only exists when there’s an incentive to cheat)

action days

a day, dedicated to environmental advocacy, where gov alerts are sent out about poor quality, prompting people to stay inside

countries with the biggest pollution gaps tend to have… 

• high pollution levels & a history of violations

• industries that can easily adjust their equipment without much disruption to their production processes

core insights on pollution gaps

1. predictable enforcement creates opportunities for exploitation (gaming)

2. gaming is strategic — happens when stakes are high and firms would rather gamble for the potential benefit

3. even well-intentioned policies can have unintended consequences

pollution gaps — how to fix the system

• more frequent monitoring to reduce gaming (newly developed, continuous monitoring tech could solve this)

• random schedules may help (but logistically are difficult)

the lesson: “when designing policy regulations, assume people will respond strategically"“