Toxics Release Information: A Policy Tool for Environmental Protection

This study examines investor reactions to the repeated public disclosure of environmental information about firms in the chemical industry and the effectiveness of this information as a decentralized mechanism for deterring their pollution. By allowing investors to benchmark the performance of firms, repeated provision of the Toxics Release Inventory led firms to incur statistically significant negative stock market returns during the one-day period following the disclosure of that information in the years 1990–1994. These losses had a significant negative impact on subsequent on-site toxic releases and a significant positive impact on wastes transferred off site, but their impact on total toxic wastes generated by these firms is negligible.     

The effect of competition on toxic pollution releases

We examine how competition affects toxic industrial releases, using five years of data from thousands of facilities across hundreds of industries. Our main result indicates that competition reduces toxic releases at the facility level. On average, each percentage-point reduction in the Herfindahl Index (HHI) results in a nearly two-percent reduction in a facility׳s toxic releases. At the same time, we find no evidence that competition increases aggregate pollution. Further analysis sheds some light on the mechanisms through which firms reduce pollution releases due to increased competition. In particular, we find suggestive evidence that this relationship is due to both reduced output and increases in abatement. We find no evidence that our result is driven by: consumer aversion to pollution, regulations changing with competition, or technologies introduced by new firms. Taken together, our results indicate that competition may be good, at least for public health in areas near polluting facilities, and fail to provide support for the hypothesis that competition leads to more socially undesirable behavior.     

Good news for environmental self-regulation? Finding the right link

We investigate the stock market response to firm disclosure of positive environmental information and the link from that information to environmental outcomes. We classify environmental media releases by informational content and value relevance, and assess the abnormal stock returns of each type of event. While announcements of future environmental activities lead to the largest favorable stock market reactions, there is no guaranteed link from this type of information to environmental outcomes. Further analysis of the abnormal returns shows that the magnitude of the stock market reaction depends on firm financial characteristics across all event types rather than on firm environmental performance. Our results indicate that the ability for voluntary environmental information disclosure to induce environmental self-regulation is limited to the extent that firms are able to follow through with their announcements of planned environmental activities.     

Voluntary corporate environmental initiatives and shareholder wealth

Researchers debate whether environmental investments reduce firm value or actually improve financial performance. We provide some compelling evidence on shareholder wealth effects of membership in voluntary environmental programs (VEPs). Companies announcing membership in EPA's Climate Leaders, a program targeting reductions in greenhouse gas emissions, experience significantly negative abnormal stock returns. The price decline is larger in firms with poor corporate governance structures, and for high market-to-book (i.e., high growth) firms. However, firms joining Ceres, a program involving more general environmental commitments, have insignificant announcement returns, as do portfolios of industry rivals. Overall, corporate commitments to reduce greenhouse gas emissions appear to conflict with firm value maximization. This has important implications for policies that rely on voluntary initiatives to address climate change. Further, we find that firms facing climate-related shareholder resolutions or firms with weak corporate governance standards – giving managers the discretion to make such voluntary environmentally responsible investment decisions – are more likely to join Climate Leaders; decisions that may result in lower firm value.     

Voluntary corporate environmental initiatives and shareholder wealth

Researchers debate whether environmental investments reduce firm value or actually improve financial performance. We provide some compelling evidence on shareholder wealth effects of membership in voluntary environmental programs (VEPs). Companies announcing membership in EPA's Climate Leaders, a program targeting reductions in greenhouse gas emissions, experience significantly negative abnormal stock returns. The price decline is larger in firms with poor corporate governance structures, and for high market-to-book (i.e., high growth) firms. However, firms joining Ceres, a program involving more general environmental commitments, have insignificant announcement returns, as do portfolios of industry rivals. Overall, corporate commitments to reduce greenhouse gas emissions appear to conflict with firm value maximization. This has important implications for policies that rely on voluntary initiatives to address climate change. Further, we find that firms facing climate-related shareholder resolutions or firms with weak corporate governance standards – giving managers the discretion to make such voluntary environmentally responsible investment decisions – are more likely to join Climate Leaders; decisions that may result in lower firm value.     

Bayes methods for combining disease and exposure data in assessing environmental justice

Environmental justice reflects the equitable distribution of the burden of environmental hazards across various sociodemographic groups. The issue is important in environmental regulation, siting of hazardous waste repositories and prioritizing remediation of existing sources of exposure. We propose a statistical framework for assessing environmental justice. The framework includes a quantitative assessment of environmental equity based on the cumulative distribution of exposure within population subgroups linked to disease incidence through a dose-response function. This approach avoids arbitrary binary classifications of individuals solely as 'exposed' or 'unexposed'. We present a Bayesian inferential approach, implemented using Markov chain Monte Carlo methods, that accounts for uncertainty in both exposure and response. We illustrate our method using data on leukaemia deaths and exposure to toxic chemical releases in Allegheny County, Pennsylvania.     

The distributive effects of public law 92-500

The large commitment of government resources for environmental protection has prompted concern for the ultimate fiscal incidence of environmental programs, including the federal wastewater treatment grant program. An earlier study of EPA Region VII (Iowa, Missouri, Kansas, and Nebraska) concluded that the federal grants are likely to redistribute income from the middle income classes to primarily the upper income classes. Using a similar methodology, this study shows that for the Boston metropolitan area, there is a substantial redistribution from upper to lower and middle income groups.     

Bakterielle Biotestverfahren zur Bestimmung der Toxizität von Abfällen

For a risk assessment of wastes, fast and sensitive screening methods are required to detect possible toxic effects. In this study, different leachability methods (DIN 38414, part 4; EPA 1310; EPA 1320) were used to prepare aqueous leachates from different wastes; these leachates were rested in different bacterial toxicity test systems for possible toxic effects. As bacterial toxicity tests, the luminescent bacteria test and the growth inhibition test with activated sludge bacteria were used. The test systems showed a good agreement of the results from the different leaching methods, thereby indicating the reliability of the test systems used. The luminescent bacteria inhibition test showed a higher sensitivity than the growth inhibition test which is in good accordance with literature data. We conclude that both test systems are well suited to assess the toxic potential of aqueous waste leachates.     

Strategic environmental disclosure: Evidence from the DOE's voluntary greenhouse gas registry

Although mandatory disclosure programs have been studied extensively, strategic voluntary environmental disclosures by firms are not well understood. We study the motivations for and impacts of firms' strategic disclosure of greenhouse gas reductions to the US government. We first model firms' joint abatement and disclosure decisions, incorporating both economic and political incentives. We then use data from the Department of Energy's Voluntary Greenhouse Gas Registry to compare reported reductions to actual emissions. We find that participants in the program engage in highly selective reporting: in the aggregate, they increase emissions over time but report reductions. In contrast, non-participants decrease emissions over time. Participants tend to be large firms facing strong regulatory pressure; pressure from environmental groups reduces the likelihood of participation, suggesting such groups viewed the program as a form of greenwash. Participating in the 1605(b) program had no significant effect on a firm's changes in carbon intensity over time.     

Do environmental right-to-know laws affect markets? Capitalization of information in the toxic release inventory

This paper investigates how information contained in the U.S. Environmental Protection Agency's Toxic Release Inventory (TRI) program, one of the largest environmental right-to-know programs, affects prices in the housing market. I use a strengthening of the reporting requirements for the chemical lead in 2001 as exogenous variation to test for housing price changes near existing firms who must now report. Using a difference-in-differences specification, I find that listing an existing firm in the Toxic Release Inventory lowers housing prices up to 11% within approximately 1 mile. The results suggest that housing market participants do capitalize into prices at least some information conveyed by the TRI program.     

The toxicity of aluminum to aquatic species in the US

In August 1988 the US Environmental Protection Agency (EPA) published an ambient water quality criteria document for the protection of aquatic organisms from the toxic effects of aluminum. The EPA water quality criteria were developed utilizing procedures described in theGuidelines for Deriving Numerical National Water Quality Criteria for the Protection of Aquatic Organisms and Their Uses, and after careful analysis of the latest toxicological information available to EPA on the adverse effects of aluminum on aquatic vertebrates, invertebrates and plants.The EPA criteria recommend that the four-day average concentration of aluminum not exceed 87 g L^–1 more than once every three years on the average when the ambient pH is between 6.5 and 9.0 to provide protection from chronic toxicity. The criteria also recommend that the one-hour average concentration of aluminum not exceed 750 g L^–1 more than once every three years on the average when the ambient pH is between 6.5 and 9.0 to provide protection from acute toxicity.Acute toxicity data for 20 species of freshwater aquatic organisms and chronic toxicity data for five species of freshwater aquatic organisms were utilized to develop the EPA water quality criteria. Striped bass and brook trout were observed to be the two most sensitive North American species to the toxic effects of aluminum. Aluminum toxicity was also observed to be increased at lower pH.     

The Determinants of an Environmentally Responsive Firm: An Empirical Approach

Our empirical results indicate that a firm's formulation of an environmental plan is positively influenced by customer pressure, shareholder pressure, government regulatory pressure, and neighborhood and community group pressure but negatively influenced by other lobby group pressure sources and a firm's sales-to-asset ratio. Firms which view environmental issues as important in the next 5 years are also more likely to have a plan. Relative to the manufacturing sector, firms in the natural resource sector are more likely to formulate environmental plans while firms in the service sector are less likely to have plans. Our results provide insight into how firms react to environmental issues. They also offer policymakers a list of determinants which can be used either as an alternative or complement to environmental regulation.     

On the search for mimetic patterns in environmental disclosure: an international perspective

In this paper, we assert and test the proposition that environmental disclosure (ED) is structured by institutionalised myths and that is why ED is decoupled from environmental performance and media pressures. Focusing on firms from Canada, France and Germany, findings show that ED mimetic isomorphism for different topics varies among countries and by industry sensitiveness to the environment. The results corroborate the institutional presumption that institutionalised myths vary among different contexts. Our findings also suggest that institutionalised ED structures may not reflect environmental performance, mimetic patterns being affected by environmental performance. However, the decoupling between ED mimetic isomorphism and environmental performance decrease when firms’ ED credibility is questioned by the media.     

Constructing meaningful environmental indices: A nonparametric frontier approach

Environmental information disclosure programs seek to motivate firms to reduce their environmental impact. A variety of environmental impacts are reported in these programs and often this information is aggregated into a composite environmental index (CEI) for easier communication. The challenge is to create a meaningful index that allows environmental performance to be compared over time and space without ambiguity. In this paper, we argue that it is important to develop a cardinally meaningful and standardized CEI and use a nonparametric frontier approach to constructing such an index. This approach has the advantage to handle issues associated with data irregularity and the mixed measurability of underlying variables. We apply this approach to constructing a CEI for evaluating the environmental performance of manufacturing facilities in different industrial sectors in Los Angeles based on data from the toxic release inventory. We show how the CEI can be used to improve facility-level environmental performance. A sensitivity analysis is conducted with respect to the uncertainty in data accuracy, which demonstrates the robustness of the nonparametric frontier approach in constructing meaningful environmental indices.     

Green clubs

This paper treats programs in which firms voluntarily agree to meet environmental standards as “green clubs”: clubs, because they provide non-rival but excludable reputation benefits to participating firms; green, because they also generate environmental public goods. The model illuminates a central tension between the congestion externality familiar from conventional club theory and the free-riding externality familiar from the theory on private provision of public goods. We compare three common program sponsors—governments, industry, and environmental groups. We find that if monitoring of the club standard is perfect, a government constrained from regulating club size may prefer to leave sponsorship to industry if public-good benefits are sufficiently low, or to environmentalists if public-good benefits are sufficiently high. If monitoring is imperfect, an important question is whether consumers can infer that a club is too large for its standard to be credible. If they can then the government may deliberately choose an imperfect monitoring mechanism as a way of regulating club size indirectly. If they cannot then this reinforces the government's preference for delegating sponsorship.     

Liability Funding and Superfund Clean-Up Remedies

The debate about Superfund liability has treated financing as a distinct issue from the efficiency of clean-up. However, this paper presents a model of EPA decision-making in which liability funding may increase or decrease the extent of clean-up. It then estimates this effect using data on remedies selected at National Priorities List sites and on the characteristics of liable parties. The results suggest that the EPA responds to concentrated private interests, selecting less extensive clean-up when liable parties are expected to bear a large share of costs. This effect should be considered in evaluating liability approaches to environmental protection.     

Corporate governance and green innovation

We study the relationship between corporate governance and firms׳ environmental innovation. Exploiting changes in antitakeover legislation in the US, we show that worse governed firms generate fewer green patents relative to all their innovations. This negative effect is greater for firms with a smaller share of institutional ownership, with a smaller stock of green patents, and with more binding financial constraints. Investigating regulatory and industry variations, we also find more pronounced effects for firms operating in states with lower pollution abatement costs, and in sectors less dependent on energy inputs. Overall, our results suggest that ineffective corporate governance may constitute a major obstacle to environmental efficiency.     

Green clubs

This paper treats programs in which firms voluntarily agree to meet environmental standards as “green clubs”: clubs, because they provide non-rival but excludable reputation benefits to participating firms; green, because they also generate environmental public goods. The model illuminates a central tension between the congestion externality familiar from conventional club theory and the free-riding externality familiar from the theory on private provision of public goods. We compare three common program sponsors—governments, industry, and environmental groups. We find that if monitoring of the club standard is perfect, a government constrained from regulating club size may prefer to leave sponsorship to industry if public-good benefits are sufficiently low, or to environmentalists if public-good benefits are sufficiently high. If monitoring is imperfect, an important question is whether consumers can infer that a club is too large for its standard to be credible. If they can then the government may deliberately choose an imperfect monitoring mechanism as a way of regulating club size indirectly. If they cannot then this reinforces the government's preference for delegating sponsorship.     

Competitive investment in clean technology and uninformed green consumers

In a market where consumers and the regulatory authorities are not fully informed about the actual production technology or environmental performance of firms that engage in strategic competition, I study the effect of environmental consciousness of consumers on firms׳ incentive to invest in cleaner technology. Firms compete in prices and may signal their environmental performance to uninformed consumers through prices. I also analyze the effect of an expected liability on firms in this setting. Compared to full information, incomplete information generates higher strategic incentive to invest in cleaner technology particularly when consciousness and/or expected liability are not too high. Requiring mandatory disclosure of technology or environmental performance may discourage such investment. Even though consumers and the regulator are uninformed, competition has a positive effect (relative to monopoly) on the incentive to invest.     

微囊藻毒素诱导细胞氧化胁迫的研究进展(Progress in Oxidative Stress on Cell Induced by Microcystin)

微囊藻毒素对生物机体具有强烈的毒性.近几年的研究表明,微囊藻毒素能够诱导细胞产生氧化胁迫,这可能是微囊藻毒素的致毒机理的一个重要方面.在总结国内外相关研究基础上,论文从微囊藻毒素诱导细胞氧化损伤以及影响其抗氧化防御系统两个方面综述了微囊藻毒素诱导细胞氧化应激的研究进展.