Impact of informal regulation of pollution on water quality in rivers in India.

In this paper an attempt is made to assess the impact of informal regulation of water pollution on water quality in Indian rivers. For this purpose, an econometric analysis of determinants of water quality in Indian rivers is carried out using water quality (water class) data for 106 monitoring points on 10 important rivers for five years, 1995-1999. To explain variations in water quality, an Ordered Probit model is estimated, in which poll percentage in parliamentary elections, a proxy for the intensity of informal regulation, is taken as one of the main explanatory variables. Rainfall, industrialization, irrigation intensity and fertilizer use are some of the other explanatory variables used in the model to control for the influence of these factors. As expected, river water quality is found to be positively related with rainfall, and negatively related with industrialization, irrigation intensity and fertilizer use. A significant positive relationship is found between poll percentage and water quality, and also between the rate of increase in literacy level in a district and the water quality in rivers flowing through the district. These results point to a significant favorable effect of informal regulation of pollution on water quality in rivers in India.