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Decentralized environmental regulations and plant-level productivity
Department of Economics, Rensselaer Polytechnic Institute, Troy, New York, USA.
Jönköping University, Jönköping International Business School, JIBS, Economics. Jönköping University, Jönköping International Business School, JIBS, Center for Family Enterprise and Ownership (CeFEO).ORCID iD: 0000-0001-5776-9396
Jönköping University, School of Engineering, JTH, Supply Chain and Operations Management.ORCID iD: 0000-0002-4825-4523
2019 (English)In: Business Strategy and the Environment, ISSN 0964-4733, E-ISSN 1099-0836, Vol. 28, no 6, p. 998-1011Article in journal (Refereed) Published
Abstract [en]

Using the framework provided by the Porter hypothesis, we study the impact of environmental regulations and enforcement policies on plant-level green total factor productivity (TFP) growth and its components related to efficiency change and technical change. The detailed microdata we use are from Sweden and for the pulp and paper industry. This industry is the source of significant amounts of water and air pollution and is one of the most heavily environmentally regulated manufacturing industries. Sweden has a unique decentralized regulatory structure where the manufacturing plants have to comply with plant-specific regulatory standards stipulated at the national level, as well as decentralized local supervision and enforcement. Our empirical results point to beneficial impacts of the environmental policies on plants' green TFP growth and sustainable production practices. We also find that political economy considerations are important, as the presence of the Green Party and aspects like plant size (with corresponding local and regional economic effects) matter in enforcement of the standards.

Place, publisher, year, edition, pages
John Wiley & Sons, 2019. Vol. 28, no 6, p. 998-1011
Keywords [en]
efficiency, environmental policy, environmental regulations, green TFP, plant-level data, political economy, Porter hypothesis, productivity, pulp and paper industry, sustainable production, technical change
National Category
Business Administration Environmental Management
Identifiers
URN: urn:nbn:se:hj:diva-43374DOI: 10.1002/bse.2297ISI: 000483696100006Scopus ID: 2-s2.0-85063295699Local ID: ;IHHCeFEOIS;JTHLogistikISOAI: oai:DiVA.org:hj-43374DiVA, id: diva2:1298152
Available from: 2019-03-22 Created: 2019-03-22 Last updated: 2019-10-03Bibliographically approved

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Stephan, AndreasWeiss, Jan F.

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