Peter Neis (UCA, CERDI)
Research Seminar. Environmental Litigation as Scrutiny: A Four Decade Analysis of Justice, Firms, and Pollution in India
Peter Neis
Université Clermont Auvergne, CERDI
Abstract
This study investigates the impact of judicial enforcement on environmental outcomes in India, using a unique data set spanning four decades that includes court cases, pollution data, corporate finances, and infant mortality rates. Leveraging the quasi-random assignment of cases to judges and their writing styles, we find evidence consistent with litigation as scrutiny. The findings show that environmental litigation leads to temporary reductions in pollution and affects firm performance during legal proceedings. However, pollution levels rebound after litigation, with no significant effect at any time on infant mortality. This highlights the limited efficacy of judicial environmental interventions in highly polluted contexts such as India.