Firm relocation as environmental policy: impacts on agglomeration, workers and the environment
This briefing uses an environmental relocation policy that randomly moved small firms from New Delhi to industrial areas outside the city.
Abstract
The authors use an environmental relocation policy that randomly moved over 20,000 small firms from New Delhi to industrial areas outside the city over several years. They found that a reduction in firm presence improves measured air quality but is costly for firms.
This is an part of the Structural Transformation and Economic Growth (STEG) programme.
Citation
Gechter M and Kala N. ‘Firm relocation as environmental policy: impacts on agglomeration, workers and the environment’ STEG Project Policy Brief, 2025
Links
Firm relocation as environmental policy: impacts on agglomeration, workers and the environment
Updates to this page
Published 30 October 2025