Environmental performance indicators: an empirical study of Canadian manufacturing firms

The aim of this exploratory study is to examine the importance of measurement and use of environmental performance indicators (EPIs) within manufacturing firms. Two research questions are investigated: (i) To what extent are firm characteristics associated with the importance of measurement of various categories of EPIs? (ii) To what extent are firm characteristics associated with global and specific uses of EPIs? More specifically, this paper examines four uses of EPIs (i.e. to monitor compliance, to motivate continuous improvement, to support decision making, and to provide data for external reporting) as well as four characteristics of firms, namely environmental strategy, International Organization for Standardization (ISO) 14001 compliance, size, and ownership. This study contributes to the environmental management accounting literature by collecting and analyzing empirical evidence that provides a better understanding of the associations among firm characteristics and EPIs.     

An empirical analysis of green switching intentions in the airline industry

The purpose of this research is to gain an empirical understanding of airline passengers’ green switching intentions. A conceptual research model is used as a framework to examine the relationships among the experiential quality dimensions, green perceived value, green corporate image, green experiential satisfaction, green corporate reputation, green experiential loyalty and green switching intentions for the airline industry. The data used in this paper were based on a sample of 615 passengers who experienced the eco-friendly services of China Airlines, indicating that the proposed model fitted the data. The study's result will assist airline management to develop and implement market-orientated service strategies to increase the experiential quality dimensions, green perceived value, green corporate image, green experiential satisfaction, green corporate reputation and green experiential loyalty in order to decrease passengers’ green switching intentions.     

An empirical investigation of returns to scale: The Welsh coal industry

This article attempts to study both returns to scale and optimal size of production. Specifically, the authors estimate a ray-homothetic production function which allows the returns to scale to vary with ouput size and input mix. The production model is estimated using data from the Welsh coal industry for the period 1961–1976. Findings showed that, first, the Welsh coal industry suffers from a level of production which is either too small or below its optimal level and, second, this discrepancy between actual and optimal production worsened over the period considered.     

Environmental management conflicts in developing countries: An analysis

An analysis of conflicts in environmental management has been made by identifying the major characteristics of conflicts. Examples of some environmental management conflicts have been presented to clarify the major issues involved It is shown that without active conservation groups it will be difficult to achieve environmental protection Two conflict resolution models are presented for analyzing various conflicting situations     

Environmental management: An experiment in orientation in India

Summary Environmental management is a most critical input for achieving ecologically sound and balanced economic growth. It is essential that policy-makers and administrators accept the significance, principles and practices of environmental management, otherwise implementation of projects will not include the environmental protection measures. Environmental management training programmes for decision-makers are, therefore, essential. In India, The Department of Environment has initiated workshop for top level managers for sensitizing them to environmental management concepts. The experience in organizing and conducting such programmes may be of value to organizations in other developing countries, and is summarised in this paper.     

Environmental portfolio analysis: An integrated strategic approach to environmental management

As businesses strive to reduce costs and become more competitive, environmental costs and potential future liability issues continue to raise overhead expenses. The decision process is further challenged by the various interpretations of existing laws and the uncertainty of future applicable regulations and their interpretation. To make more informed business decisions and bridge the gap between the environmental and business perspective, organizations need to be able to see the overall environmental picture and how it affects the current and future business operation. This article presents a systematic approach to developing an organization's integrated baseline “environmental portfolio” with various business risk levels and expected costs. Utilizing computer simulation, sensitivity iterations are performed to show the results of different scenarios. These scenarios can include various probabilities of cost levels, permitting strategies, and litigation, as well as the success of new technologies. Management can then focus attention on the main driving factors and avoid spending too much attention on lesser items. An additional benefit to this process is that communication between the various segments of an organization are enhanced since their perspectives are clearly articulated as part of the analysis. Sensitivity analysis also provides the framework for a sanity check of the process and results. Are projected levels of success reasonable? What levels would be required to change the decision, and how likely are they to occur? What level of overall business risk associated with environmental issues is prudent? In addition this article shows how computer modeling and simulation can bring a valuable perspective to the decision-making process.     

Environmental strategy and performance in small firms: a resource-based perspective

In spite of the widespread recognition of the important roles that small and medium sized enterprises (SMEs) play in most economies, limited research has focused on their impacts on the natural environment and the strategies such enterprises adopt to reduce these impacts. It is usually assumed that SMEs lack the resources to implement proactive environmental strategies that go beyond minimum regulatory compliance. In this study of 108 SMEs in the automotive repair sector in Southern Spain, we found that SMEs undertake a range of environmental strategies from reactive regulatory compliance to proactive pollution prevention and environmental leadership. These strategies are associated with three organizational capabilities: shared vision, stakeholder management, and strategic proactivity, hypothesized based on the unique strategic characteristics of SMEs--shorter lines of communication and closer interaction within the SMEs, the presence of a founder's vision, flexibility in managing external relationships, and an entrepreneurial orientation. We also found that firms with the most proactive practices exhibited a significantly positive financial performance.     

Impact of crude oil price volatility on economic activities: An empirical investigation in the Thai economy

This paper empirically examines the impact of oil price volatility on key macroeconomic indicators of Thailand. Following Andersen et al. [2004. Analytical evaluation of volatility forecasts. International Economic Review 45(4), 1079–1110], quarterly oil price volatility is measured by using the realized volatility (RV). The impact of the oil price volatility is investigated using the vector auto-regression (VAR) system. The Granger causality test, impulse response functions, and variance decomposition show that oil price volatility has significant impact on macroeconomic indicators, such as unemployment and investment, over the period from 1993Q1 to 2006Q4. Perron's [1997. Further evidence on breaking trend functions in macroeconomic variables. Journal of Econometrics 80(2), 355–385] test identifies structural breaks in all the concerned variables during the time of the Asian Financial Crisis (1997–1998). A VAR for the post-crisis period shows that the impact of oil price volatility is transmitted to budget deficit. The floating exchange rate regime introduced after the crisis may be the key contributor to this new channel of impact.     

Environmental performance and spillover effects on productivity: evidence from horticultural firms

This study investigates the effect of environmental investment and related spillover effects on productivity in the agricultural sector by using a panel data of horticultural firms in Andalusia (Southern Spain). The results indicate a positive relationship between firm investment in environmental practices and productivity improvement, also showing the presence of positive environmental spillovers. In a second-stage of analysis, the incidence of environmental factors in firm specific individual technical efficiency is estimated. This analysis also shows the link between environmental knowledge diffusion and horticultural firms' performance.     

Environmental perceptions of Irish and Bavarian pupils: an empirical study

The present study deals with the evaluation of environmental/ecological perceptions of secondary school pupils. It has two major objectives. Firstly, to administer a measurement instrument to explore ecological/environmental perceptions for a sample of approximately 900 Irish secondary school pupils aged between 12 and 16 years. The operation and use of three subscales, environmental behaviour, utilization of nature and consideration for conservation, was based on a previous study undertaken in Bavaria, but its structure, dimensionality and reliability was further assessed using psychometric procedures. Secondly, the study monitored the differences in these dimensions between Irish and Bavarian pupils. Common items within the subscale structure were selected from both samples to form a truncated item selection and to function subsequently as the basis for the final factor analysis applied to the combined Irish–Bavarian sample. Comparisons on this basis indicated substantial differences in attitudes and environmental behaviour between pupils from both regions: the Irish sample favoured less conservational values, but more patronage for the utilization of nature and it revealed less willingness to take and plan action in individual environmental behaviour. In addition, the Irish sample disclosed a significantly greater gender difference in the two subscales.     

Efficient management of marine resources in conflict: An empirical study of marine sand mining, Korea

This article develops a dynamic model of efficient use of exhaustible marine sand resources in the context of marine mining externalities. The classical Hotelling extraction model is applied to sand mining in Ongjin, Korea and extended to include the estimated marginal external costs that mining imposes on marine fisheries. The socially efficient sand extraction plan is compared with the extraction paths suggested by scientific research. If marginal environmental costs are correctly estimated, the developed efficient extraction plan considering the resource rent may increase the social welfare and reduce the conflicts among the marine sand resource users. The empirical results are interpreted with an emphasis on guidelines for coastal resource management policy.     

Environmental management: A system approach

This paper presents a system framework whose purpose is to improve understanding of environmental management. By analyzing the links between elements of the environmental management system, it is possible to construct a model that aids thinking systematically about the decision-making subsystem, and other subsystems, of the entire environmental management system.Through a multidisciplinary environmental approach, each of the individual subsystems is able to adapt to threats and opportunities. The fields of government, market economics, social responsibility and ecology, for example, are so complex that it is extremely difficult to develop a framework that gives full consideration to all aspects. This paper, through the application of a highly idealized system framework, attempts to show the general relationships that exist between complex system elements.     

Use of recycled products in UK construction industry: An empirical investigation into critical impediments and strategies for improvement

Construction industry consumes about half of all material resources taken from nature, and generates a large portion of waste to landfill. A way of tackling negative environmental impacts impending from continuous material extraction and waste generation is the use of recycled materials for construction projects. However, the use of recycled materials is yet to become a commonplace in construction industry. This study evaluates the factors hampering the use of recycled products in UK construction industry as well as strategies that could be adopted to enhance its use in the industry. In order to identify the impediments and critical strategies, a two-fold methodical approach was used. An unstructured interview preceded a quantitative questionnaire survey which was used to elicit broader industry practitioners’ opinion.The study shows that designers rarely specify recycled products. This is due to lack of adequate information about quality and market availability of the products, negative perception from clients, and unexpectedly high cost of the products, despite its perceived low quality. The study suggests that a number of strategies could be adopted to promote the use of the products. These include allocation of points to the use of recycled products in sustainable design appraisal tools, governments legislative measures, improved collaboration between designers, contractors and materials suppliers, contractors involvement at earlier stage of design, improved education of the professionals about the products, and the use of tax break to influence the cost of the products. The findings of this study would therefore help policy makers, manufacturers and construction professionals to identify the factors hampering the use of recycled products for construction projects as well as the strategies that could be adopted in order to create market for the products.     

An empirical study on the driving mechanism of proactive corporate environmental management in China

Environmentalism in China is under transformation from the traditional command and control model to emphasize the advantages of economic tools and encourage the participation of the public. Firms are much more aware of the importance of environmental issues, and some of them have practiced environmental activities beyond compliance. In order to help understand the driving mechanism of proactive corporate environmental behaviors from the firm’s perspective, this paper identifies the drivers affecting the proactive environmental management level (EML_p) based on the institutional theory, and gives an empirical study on the firms based in Changshu city of Jiangsu Province, China. The usable data, collected from the 117 valid respondents in a questionnaire survey, indicates that EML_p is still moderately low currently. Less than 10% of the samples are practicing all the six categorized types of voluntary environmental activities. The econometric exercise confirms a significantly positive effect of the externally mimetic pressure on EML_p, which may attribute to a higher sensitivity of Chinese companies to the market factors. However, the roles of the general public and industrial associations are not significant, showing the marginal power of selected normative pressures. Regarding internal factors, firms, which view environmental issues as opportunities and often arrange internal environmental training, are more likely to adopt proactive environmental activities. More concerns from the general public like neighborhood communities and mass media shall be addressed to enhance the normative power to improve EML_p in China from the future perspective.     

An empirical analysis of productivity: Welsh coal industry

A non-homogeneous variable-elasticity-of-substitution production function is estimated using data for the Welsh coal industry. From 1961 to 1976 output declined, returns to scale increased and the elasticity of substitution fell. At the end of the period, the elasticity of substitution between capital and labour in the coal industry is still large and there may be room for greater employment in the industry at a time of high and rising unemployment, subject to other overall considerations. While marginal productivity of labour in physical terms has been stagnant, price rises in the industry in recent years have been in excess of what was needed to finance wage settlements. Perhaps price rises granted to the coal industry by the UK government were justified, but they require closer scrutiny.     

Environmental perception: An odyssey of ideas

Convergent interests paved the way for multidisciplinary research in environmental perception and behavior, in which the Clark Group was an important focus. For me that fruitful conjunction began in the mid-1960s, when I taught at Clark and had just embarked on a large-scale assessment of observer responses to urban milieus. Through the early 1970s the Clark Group helped to catalyze perception insights generally and to guide my own work. Emigration to Britain in 1972 distanced me from that ambience and style of inquiry, but the Clark experience continues to inform by perceptual excursions into images of the past.Specific memories of Clark merge with general judgements about the fortunes of environmental perception research. By the early 1970s it was already clear that various drains on scanty human resources in this new field left insufficient concerted attention for theory and synthesis. The 15 years since have seen little fundamental progress. Much research seems narrow in scope, lifeless in tone, and trivial in its conclusions. Exciting advances can be found along a number of peripheries, but the centre seems devoid of spirit.     

Environmental quality management in the united states in the 1980s and beyond: An appraisal

Summary This paper presents an overview of: (1) the institutional context of the environmental pollution sector of environmental quality management; (2) accomplishments and problems in some representative subsectors; and (3) prospects. The author describes levels of government within the US federal system and lists types of organizational structures, explains the division of responsibilities for managing environmental quality among legislative bodies/executive agencies, state and federal courts, and state public utility commission, and notes the significant role of nongovernmental environmental groups. In order to assess both the past performance and present status of environmental quality management in the United States, Bower cites some specific and generic problems in such subsectors as water quality, soil erosion, air quality, and hazardous wastes. He goes on to characterize recent approaches and their results using these observations as a basis for an appraisal of future prospects in the context of intermedia impacts and multiple modes of impact on various species. Remarks prepared for presentation at theColloque International, Les Politiques de l'Environnement Face à la Crise, Paris, 10–12 January, 1984. Blair T. Bower, a Registered Civil Engineer, is a Consultant in Residence at Resources For the Future in Washington, DC. He has worked extensively in the US and abroad on environmental quality management with such international organizations as the UN, WHO, OAS, and OECD. His current involvements include consultancies with the US National Oceans and Atmospheric Administration, Strategic Assessments Branch/Oceans Assessment Division; as Leader for Utilization of Coastal Water Problem Areas/Analyzing Biospheric Change Programme, International Federation of Institutes for Advances Study; and with the Office of Policy Analysis/US Environmental Protection Agency. An early supporter of integrated approaches to natural resource/environmental planning and management and to residuals disposal, Mr Bower is the author of many publications on a wide range of environmental topics and management options.     

Environmental management auditing: When credentials count!

We all know that the process of driving a car is not as simple as turning a key in the ignition and moving. When you want to drive a car, you take a written test to show your knowledge of the rules of the road. You learn to operate a vehicle (remember the operating difference between a standard shift and an automatic?) and then how to operate that vehicle in moving traffic. After you have gained competence in vehicle operation, you take a “hands-on” driving test to prove to an independent third party (the State) that you know what you are doing. Then, if you do know, you are issued a license, subject to renewal and perhaps retesting at some later point in time. Your license has become your credential to operate. It implies a certain minimum level of knowledge and experience. Should environmental auditing be any different? This article considers the application of a uniform standard for environmental auditor qualification. With an emphasis on ISO 14001¹ and auditing of environmental management systems, it discusses:

• the evolution of environmental auditing;
• established environmental auditor qualification processes;
• limitations of compliance auditing; and
• characteristics of a good auditor.

     

Environmental impact assessment: An international evaluation

Experiences with environmental impact assessment (EIA) in a number of countries are discussed in the light of both explicit and implicit goals and objectives. Adequate environmental information is not always available to decision makers because of failure to apply EIA to all relevant decisions, the continuing inadequacies of prediction and evaluation techniques, the failure to consider alternatives adequately, and the bias of some EISs. EIA frequently results in changes to proposals and may result in stricter environmental management conditions in some cases, but some people regard it as a failure because it has not stopped development. Generally, EIA leads to better integration of environmental factors into project planning. Open procedures and freedom of information encourage responsiveness to EIA procedures, which can be weakened by discretionary powers and lack of access to the courts by public interest groups. However, legal standing may have side effects that offset its advantages. EIA can encourage cooperation and coordination between agencies but does not ensure them. Similarly, it can have a limited role in coordinating interstate and international policies. In the long term, the success of EIA depends on adequate monitoring, reassessment, and enforcement over the life of the project. EIA has generally opened up new opportunities for public participation, and may help to reduce conflict. EIA procedures need to be integrated with other environmental protection and development control programs, and various means exist for reducing its cost to developers and the public.