Impact evaluation
3ie
2013
How accurate and credible is an environmental audit if the auditor is chosen and paid for by the firm being audited? In this 3ie-supported impact evaluation report, Esther Duflo, Michael Greenstone, Rohini Pande and Nicholas Ryan provide a clear answer. Their impact evaluation of an environmental audit scheme in Gujarat shows such an arrangement encourages corruption and misreporting of industrial plant emissions. Independent audits on the other hand produce more accurate reports and prompt firms to curtail pollution.