Firm relocation as environmental policy: impacts on firms and air quality

Research Note
Published on 9 June 2023


We evaluate a policy which relocated over 20,000 firms identified as polluting from central Delhi to industrial areas on the outskirts of the metro area. Roughly 58% of these firms ceased operation as a result of having been relocated. We do not find evidence that the relocation policy resulted in significant decreases in air pollution levels.


Michael Gechter

Penn State University

Namrata Kala

Massachusetts Institute of Technology