Win-win opportunities and environmental regulation: testing of porter hypothesis for Indian manufacturing industries

This paper studies the effect of environmental regulation on the productive efficiency of water polluting industries in India. The panel data of 92 firms belonging to sugar industry of India during the period 1996-99 are used to test the Porter hypothesis of having win-win opportunities for the firms subjected to the regulation. The main empirical result is that the technical efficiency of firms increases with the degree of compliance of firms to the environmental regulation and the water conservation efforts there by supporting the Porter hypothesis.     

The effect of environmental regulation on firms' competitive performance: the case of the building & construction sector in some EU regions

There is a considerable debate on the effects of environmental regulation on competitive performance. Based on survey data, this paper analyzesthe two main research questions, derived from literature, on the links between environmental regulation and competitiveness, by focusing on firms operating in the building and construction sector, i.e.: 1) whether environmental policy stringency affects the competitive performance of firms in the building and construction sector 2) and how a specific form of environmental regulation (direct regulation, economic instruments and soft instruments) affects this performance? By applying a regression analysis, we find that a more stringent environmental regulation, measured by inspection frequency, provides a positive impulse for increasing investments in advanced technological equipment and innovative products and on business performance. Moreover, a well-designed “direct regulation” appears to be the most effective policy instrument for prompting the positive impact of environmental policies on innovation and intangible performance while economic instruments do negatively affect business performance.     

Environmental innovation activities and patenting: Germany reconsidered

This paper provides new econometric evidence on the determinants of eco-innovations by using multiple innovation indicators and by combining survey-based information and patent records at the firm level from two different time periods. We hypothesize that firms with a propensity to patent focus on future technological and market opportunities and do not directly or immediately react to incentives created by environmental policies. Based on negative binomial models, we confirm that eco-patents are stimulated by the expectation of creating technological advancement and new market opportunities. By contrast, energy cost savings can better or more easily be achieved when firms refrain from patenting and concentrate on non-patented innovations or adoption. Favorable framework conditions created by environmental policies and patent protection are also important for eco-patenting, but more in the longer term. Testing the validity of using self-reported eco-innovations, instead of patents, as the dependent variable in simple binomial probit models reveals that product eco-innovations as reported in the surveys are a relatively good proxy for eco-patents. Yet, for product eco-innovations, serving and enlarging current markets is another important reason to innovate.     

环境规制、技术创新与企业绩效——基于石化行业VOCs排污收费政策的准自然实验

文章以2015—2019年中国石化行业337家上市公司为研究样本,运用双重差分模型验证了当期环境规制对后一期企业绩效的正向影响。进一步的中介效应检验发现,环境规制主要通过技术创新促进企业绩效的提高,从而验证了中国石化行业“波特假说”的存在。此外文章还发现环境规制影响企业绩效的效果及作用机制存在显著的区域差异,东、中部地区表现出显著正向影响,均支持“波特假说”,西部地区则影响不明显。基于上述研究,文章认为促进石化行业的绿色低碳发展,需进一步加大石化行业生态环境保护的政策实施力度、促进石化行业企业的科技投入并注重区域差异。     

Environmental compliance: The good, the bad, and the super green

Although many empirical studies have examined firms' decisions to participate in voluntary environmental programs, relatively few have examined why firms choose different levels of compliance with environmental regulations. This paper uses primary data to examine why some firms violate regulatory standards on water pollution, solid waste, toxic and hazardous waste, and hazardous air emissions, while others over-comply with them. The results suggest that different factors drive decisions to violate or over-comply with an environmental regulation. Some evidence was found to support the strategic behavior theory of environmental overcompliance, but no corroborating evidence was uncovered to support the green consumer theory.     

Squandered profit opportunities? Some historical perspective on industrial waste and the Porter Hypothesis

Despite numerous studies, the ‘Porter Hypothesis’ (PH), which states well-designed regulations can compel manufacturers to develop innovations with both economic and environmental benefits, remains unsettled. We examine two significant cases for which PH claims were once made: the British alkali industry and the (Tennessee) Copper Basin smelting operations. Our conclusions are: (1) the PH is based on a flawed understanding of how ‘win win’ innovations spontaneously emerge in competitive settings, (2) regulatory pressures were only one (and typically minor) factor, and (3) “strict and well designed” environmental regulations are unlikely to deliver superior outcomes to traditional property rights-based approaches.     

双重环境规制、创新开放度与制造企业创新投入

如何在经济发展的同时实现有效的环境保护成为企业亟待解决的问题。本文以2011—2017年沪深A股制造业上市公司为样本,检验了双重环境规制、开放广度、开放深度与企业创新投入之间的作用关系。研究发现:政府环境规制对企业创新投入具有显著正向作用,有利于企业响应政府规制加大创新投入力度;公众环境规制对企业创新投入的影响不显著,企业倾向采用公关方式应对公众规制需求;开放广度越大,政府与公众环境规制对企业创新投入的正向影响越强;开放深度不会改变环境规制对企业创新投入的影响。本研究为企业有效整合内外部资源开发节能减排技术,响应对政府和公众双重环境规制的要求提供了一定理论支持和决策参考。     

An experimental study to explore WTP for aviation carbon offsets: the impact of a carbon tax on the voluntary action

As Australia recently introduced a mandatory carbon price, this paper provides a rare perspective of how such institutional changes influence consumer preferences for voluntary climate action. When examined using three contingent valuation questions, the results show that the compliance mechanism induces a substantial reduction in the number of air travellers who are willing to pay extra for voluntary carbon offsets and in the payment amount, although the crowding-out effect is incomplete. A disproportionately larger welfare benefit is attached to the carbon offsets for a domestic flight than its international counterpart. Overall empirical findings advocate the continued role of voluntary programmes.     

Fostering green innovation in achieving sustainable performance

Nowadays, sustainable development has been underlined as critical in relation to firm performance and is becoming a global concern. Green innovation is believed to be a fundamental approach to environmental protection and determines the firms' competitiveness. Many factors drive the success of adopting green innovation. Unfortunately, many studies generally focus on large industries. This study investigates the influence of the firms' external pressure and internal factors simultaneously on the adoption of green innovation in small enterprises in developing countries. We conceptualized the four factors that may determine the successful implementation of green innovation to achieve sustainable performance, including environmental regulations, customer pressure, resources and capabilities, and management commitment. Data were gathered from 160 food sector SMEs in Malang Raya, Indonesia. Data analysis used structural equation modeling with the partial least squares approach (SEM-PLS). The empirical results conclude the positive effects of customer pressure, resources and capabilities, and commitment management on green innovation, which in turn had a positive on sustainable performance. The results also confirmed that environmental regulations did not significantly impact green innovation. The findings provide valuable contributions and encourage SMEs to foster green innovation's potential for better sustainable performance and competitive advantage. The findings also offer integrated perspectives on how firms should be more innovative toward sustainability.     

Air pollution control by economic incentives in the U.S.: Policy,problems, and progress

This paper deals with cost-effectiveness of the economic incentive policies of the bubble concept and offset credits relative to the policy of direct regulations of air emissions. The second section discusses single- and multi-plant bubbles, their adoption across regions and industries, the methods used to control emissions and the extent of savings in costs. We conclude that despite the delay resulting from duplication of review of state implementation plans by both the state and the Environmental Protection Agency, the required technological commands, the requirement to model air quality and the restrictions to permit bubbling only in the attainment areas, the policy is progressing successfully and should be encouraged by eliminating the restrictions. The third section analyzes the policy of emission offset credit, trading, and banking which can permit economic growth in nonattainment areas. It reviews the available literature, which deals only with aggregation of offsets across cities instead of individual offset trades. Progress by individual offset trades is analyzed in terms of the number of offsets, their acceptance across regions, the extent of reductions in emissions, and the classification of the offsets into internal and external trades. Comparison of estimated capital costs and prices of individual offsets with direct regulation costs reveals that the former are economical. We conclude that despite the problems of high tradeoff ratios, the short and uncertain life of the emission offset credits and the technological commands, the policy is progressing successfully and should be encouraged further by relaxing restrictions.This paper represents the author's personal views. Neither the Commission nor any member of its staff is in any way responsible for these views.     

环境政策对企业绩效的影响

一个国家的环境政策是国家保护环境的大致方针,直接关系到这个国家的环境立法和环境管理,更直接影响到这个国家的整体环境状况,不同类型的环境政策对企业也产生了各方面的影响。本文研究环境政策的不同形式、内容、具体执行手段及其对企业的环境、经济绩效产生的影响。通过研究西方发达国家的成功环境政策,探讨我国环境政策中存在的不足与缺陷。最后根据不同管理手段的可行性,有效性及最终效果,联系我国具体国情,在符合可持续发展原则的同时,提出更为有效,对企业绩效具有正面刺激的环境政策建议。     

A fuzzy multi criteria approach for evaluating green supplier's performance in green supply chain with linguistic preferences

Today's international business environment has forced many firms to focus on supply chain management to gain a competitive advantage. During recent years, supplier selection process in the supply chain has become a key strategic consideration. With the growing worldwide awareness of environmental protection and the corresponding increase in legislation and regulations, green purchasing has become an important issue for companies to gain environmental sustainability. Traditionally, companies consider criteria such as price, quality and lead time, when evaluating supplier performance and do not give enough attention to environmental criteria as a means to evaluate suppliers. Now, many companies have begun to implement green supply chain management (GSCM) and to consider environmental issues and the measurement of their suppliers’ environmental performance. This paper examines GSCM to propose a fuzzy multi criteria approach for green suppliers’ evaluation. We apply fuzzy set theory to translate the subjective human perceptions into a solid crisp value. These linguistic preferences are combined through fuzzy TOPSIS to generate an overall performance score for each supplier. A numerical example is presented to demonstrate the effectiveness of the proposed approach.     

Mandatory planning for environmental innovation: evaluating regulatory mechanisms for toxics use reduction

This paper analyzes the Massachusetts Toxics Use Reduction Act (TURA), evaluating what TURA has achieved, how it has been implemented, how it motivates firms to change and how its underlying principles might be strengthened to better support innovation for toxics use reduction. Through this analysis recent debates are engaged about the potentials and limitations of using regulation to promote innovation for the environment. The analysis here shows that TURA is distinct from existing regulatory programmes in how it requires firms to self‐evaluate and plan for process improvements, supports implementation through technical assistance and focuses on pollution prevention rather than control. Mandatory planning, new mechanisms of accountability and improved processes of learning have all been critical to TURA's success in motivating firms to innovate for the environment. Taken together, these factors have supported incremental innovations in industry that may point the way toward policies to support even greater environmental improvements.     

Reinventing Environmental Regulation from the Grassroots Up: Explaining and Expanding the Success of the Toxics Release Inventory

/ The success of the Toxics Release Inventory (TRI) stands in stark contrast to most other environmental regulations in the United States. Between its inception in 1988 and 1995, releases of chemicals listed on the TRI have declined by 45%. We argue the TRI has achieved this regulatory success by creating a mechanism of "populist maxi-min regulation." This style of regulation differs from traditional command-and-control in several ways. First, the majorrole of public agencies is not to set and enforce standards, but to establish an information-rich context for private citizens, interest groups, and firms to solve environmental problems. Second, environmental "standards" are not determined by expert analysis of acceptable risk, but are effectively set at the levels informed citizens will accept. Third, firms adopt pollution prevention and abatement measures in response to a dynamic range of public pressures rather than to formalized agency standards or governmental sanction. Finally, public pressure ruthlessly focuses on the worst polluters-maximum attention to minimum performers-to induce them to adopt more effective environmental practices. TRI has inadvertently set in motion this alternative style of regulation that has, in turn, dramatically reduced toxics emissions in the United States. By properly understanding the mechanisms that drive TRI's accomplishments, more intentional public policy designs can expand the system of populist maxi-min regulation and achieve even more rapid toxics reduction.     

OWNERSHIP AND WATER SYSTEM OPERATION1

ABSTRACT: Two types of organizational systems provide most of the water service in the United States. The investor-owned firm operates on a profit basis generally subject to state commission regulation. The government-owned firm is generally confronted by local control. The comparative efficiency of private versus government firm provision of water services is essentially an empirical issue. Unit costs and other operating statistics are examined for water firms of each ownership form. The analysis shows that private firms tend to have higher operation costs than do government firms, possibly attributable to wage-salary differentials. The analysis also indicates that capital investment in large government firms may result in diseconomies. The analysis creates serious doubt as to whether efficient provision of water services can be better facilitated by large mergers of either ownership form.     

3M international environmental management system

To meet the changing needs of 3M's expanding worldwide operations, its International Environmental Operations group is striving to enhance and integrate a global environmental management system. When well-designed, such systems not only can function to guarantee compliance with environmental regulations but also serve to help the company reap the benefits of going “beyond compliance.” They can also prepare facilities to meet the requirements of international standards, such as ISO 14000 or EMAS. An Environmental Management System (EMS) is a necessary step toward achieving sustainable development and gaining competitive advantage in the global marketplace. The challenge of constructing such a system can seem daunting to a multinational company confronted with the spectrum of regional environmental regulations/directives and its own diversity of business and social cultures. This article describes the development and implementation of the 3M International Environmental Operations global EMS initiative.     

Is there a common metals demand curve?

Previous studies have identified a single, stable and strong correlation between the price of metals and their consumption, such that low priced metals are always used in large amounts and visa versa. Some have interpreted this as evidence that metals share a common demand curve so that a single price elasticity of demand exists. This paper reviews and tests this hypothesis against a number of other possible explanations, including the idea that the relationship is an empirical curiosity. Modifications to the demand curve were tested by allowing metals to have different intercepts and price elasticities. The results from this analysis suggest that metals do not share a common demand curve and that the correlation identified between the price of metals and their level of consumption is an empirical curiosity. As such, the singular price elasticities published in past papers should not be used for assessing future rates of metals substitution.     

COMPARATIVE BASES OF INDUSTRY POLLUTION ABATEMENT AND COMMERCIAL INNOVATION: IMPLICATIONS FOR WATER RESOURCES MANAGEMENT1

ABSTRACT: Adoption, maintenance, and operation of pollution control technology by manufacturing firms is essential to effective water resource management. In this study of 102 industries, we find that company adoption of pollution control technology and practices is primarily associated with two factors: (1) the overall company capacity for innovation in its production technology; and (2) company relationships with state and federal pollution control agencies, local government officials and professionals. Managerial attitudes about pollution and government regulation are not associated with either pollution control or commercial innovation, but are seen as basic to industry-government relationships. The data suggest an important regulatory dilemma, the problem of regulating a large number of small companies with a low capacity for innovation, but which when taken together account for large volumes of toxic effluent.     

全面系统完善我国生态文明党内法规体系

生态文明党内法规是中国特色社会主义法治体系的重要组成部分。党的十八大以来,随着生态文明写入党章,生态文明专门党内法规及相关党内法规对生态文明的规定得到丰富和发展。但由于建设时间短,加上我国正处于经济社会发展的转型期,生态文明党内法规体系建设存在相关党内法规制定的规范性和权限的明确性不够、法规的系统性和体系的层次性不够、条文的清晰性和规范的可操作性不够、适用的涵盖性和内外的衔接性不够等问题。为此本文建议：①统筹规划,开展生态文明党内法规的系统性和规范性建设;②重点建设,分级分领域制修订生态文明建设和改革的专门党内法规;③全面融入,将生态文明的建设和改革要求分解到各级各类党内法规中;④厘清关系,加强与国家生态环保法律法规的衔接和协调。     

ESG研究进展及其在“双碳”目标下的新机遇

环境、社会和治理（ESG）是一种由资本市场发展形成的融合多利益相关方诉求的新理念,目的是推动企业提升社会责任和实现可持续发展。推进ESG理念在中国发展,对国家扩大对外开放、增强企业国际竞争力以及实现“双碳”目标具有重大意义。本研究通过综述2019年3月—2022年3月以来国内外以ESG为主题的文献,分析ESG实践特点和发展新动向。研究发现,ESG三要素在金融投资、企业或银行财务表现、企业价值、企业社会责任绩效以及可持续发展能力方面会产生多样化影响。本文建立了一个包含ESG多利益相关方、第三方机构以及ESG代表性指南政策法规的运行体系框架,形象化地凝练了ESG的内涵和实践重点;结合理论研究,运用驱动力、压力、状态影响及响应（DPSIR）分析框架揭示了ESG理念在我国“双碳”目标下的发展方向。最后,建议从三方面推进ESG理念：以工业园区为载体推动企业整体性开展ESG实践创新;推进A股企业扩大ESG实践示范试点,引领中小企业整体提升;引导投资者积极参与ESG投资,推进企业提升现代化环境治理能力。