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Decentralized Regulation, Environmental Efficiency and Productivity
Georgia Institute of Technology, Atlanta.
Jönköping University, Jönköping International Business School.
Jönköping University, Jönköping International Business School.
2014 (English)Report (Other academic)
Abstract [en]

Using a unique plant-level dataset we examine green productivity growth in Sweden’s heavily regulated pulp and paper industry, which has historically been a significant contributor to air and water pollution. Our exercise is interesting as Sweden has a unique regulatory structure where plants have to comply with national environmental regulatory standards and enforcement, along with decentralised plant-specific regulations. In our analysis, we use the sequential Malmquist-Luenberger productivity index which accounts for air and water pollutants as undesirable outputs. Some of our key findings are: (1) regulation has stimulated technical change related to pollution control, and has induced plants to catch up with the best-practice technology frontier with regard to effluent abatement; (2) large plants are more heavily regulated than small plants; (3) plants in environmentally less sensitive areas or those with local importance as employer face relatively lenient regulatory constraints; (4) environmental regulations trigger localized knowledge spillovers between nearby plants, boosting their green TFP growth.

Place, publisher, year, edition, pages
2014.
Series
Working Paper Series in Economics and Institutions of Innovation, 342
Keyword [en]
TFP, DEA, Sequential Malmquist - Luenberger productivity index, pulp and paper industry, pollution, environmental regulations, enforcement, plant - specific regulation, productivity, Porter hypothesis
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-23492OAI: oai:DiVA.org:hj-23492DiVA: diva2:697534
Available from: 2014-02-18 Created: 2014-02-18 Last updated: 2014-02-18

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Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
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Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
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Output format
  • html
  • text
  • asciidoc
  • rtf