TY - JOUR
T1 - Adoption of pollution prevention techniques
T2 - The role of management systems and regulatory pressures
AU - Khanna, Madhu
AU - Deltas, George
AU - Harrington, Donna Ramirez
N1 - Funding Information:
Acknowledgements We would like to thank participants in the Program for Environmental and Resource Economics Workshop at the University of Illinois, participants in the Department of Agricultural Economics and Rural Sociology seminar at Pennsylvania State University and participants in the AERE session at the American Agricultural Economics Meeting in Providence, Rhode Island for helpful comments and discussion. We thank Farzad Taheripour for assistance with the data compilation. We would also like to thank Jay Shimshack for helpful discussion. Financial support from the EPA STAR program grant no. R830870 is gratefully acknowledged.
PY - 2009/8
Y1 - 2009/8
N2 - This paper investigates the extent to which firm level technological change that reduces unregulated emissions is driven by regulatory pressures, and firms' technological and organizational capabilities. Using a treatment effects model with panel data for a sample of S&P 500 firms over the period 1994-1996, we find that organizational change in the form of Total Quality Environmental Management leads firms to adopt pollution prevention practices, after controlling for the effects of various regulatory pressures and firm-specific characteristics. We find that the threat of anticipated regulations and the presence of 'complementary assets' is important for creating the incentives and an internal capacity to undertake incremental adoption of pollution prevention techniques.
AB - This paper investigates the extent to which firm level technological change that reduces unregulated emissions is driven by regulatory pressures, and firms' technological and organizational capabilities. Using a treatment effects model with panel data for a sample of S&P 500 firms over the period 1994-1996, we find that organizational change in the form of Total Quality Environmental Management leads firms to adopt pollution prevention practices, after controlling for the effects of various regulatory pressures and firm-specific characteristics. We find that the threat of anticipated regulations and the presence of 'complementary assets' is important for creating the incentives and an internal capacity to undertake incremental adoption of pollution prevention techniques.
KW - Environmental management
KW - Total Quality Management
KW - Toxic releases
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U2 - 10.1007/s10640-009-9263-y
DO - 10.1007/s10640-009-9263-y
M3 - Article
AN - SCOPUS:70350151563
SN - 0924-6460
VL - 44
SP - 85
EP - 106
JO - Environmental and Resource Economics
JF - Environmental and Resource Economics
IS - 1
ER -