Effects of environmental regulation on actual and expected profitability

Rassier, Dylan G.; Earnhart, Dietrich

doi:10.1016/j.ecolecon.2015.02.011

Cited by 128 publications

(50 citation statements)

References 76 publications

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“…For the EU food processing sector Chaddad & Mondelli (2013) and show based on HLM that firm size is a decisive factor to overcome downstream market power and administrative barriers associated with pre-market approval procedures (Wijnands et al, 2007). Along these lines Pindado & Alarcon (2015) show for the Spanish meat industry that investment in fixed assets is positively related to profitability as such investments reflect efforts to remain competitive through modernization and innovation.…”

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confidence: 99%

“…The main deficiency of the paper is that other variables which have previously been related to profitability such as advertising and capital intensity (Chaddad & Mondelli, 2013), membership of specific strategic groups (Pindado & Alarcon, 2015), import and export activity (Yurtoglu, 2004), mergers and acquisitions (Melia et al, 2010), vertical integration (Grau & Reig, 2015), or regional factors such as local fiscal policy and consumption power (Tamminen, 2016) cannot be included due to data availability. Especially within the food sector, advertising intensity can constitute an important competitive advantage (Sutton, 1991;Chaddad & Mondelli, 2013).…”

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What drives firm profitability? A multilevel approach to the Spanish agri-food sector

Zouaghi¹,

Sánchez

Hirsch

2017

Span. j. agric. res.

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Strategic management research has demonstrated the importance of firm-and industry structure as drivers of firm profitability. However, less is known about how firms´ geographical locations affect profitability. Applying a multi-level approach of hierarchical linear modeling we estimated firm-, industry-, and region-specific effects on profitability of 3,273 agri-food firms operating in different Spanish districts over the time span 2006-2013. The results reveal the dominance of firm-specific effects which contribute up to 48.8% to variance in firm profitability while the contribution of industry effects (0.8-4.2%), geographical location (0.1-1.8%), and year effects (0.1-2.5%) is rather small. Moreover, firm size, risk, and innovative activity turn out as significant profit drivers at the firm level. Although firm-effects outweigh industry-and region-specific factors, the results indicate that industry concentration as well as regional education and unemployment influence profitability. In addition, proximity to technological institutes as well as the degree of urbanization of the region in which a firm operates can be drivers of profitability. Hence, despite the superiority of firm effects the results indicate that agri-food managers should also consider possible advantages from location-based resources in order to ensure competitiveness.Additional keywords: agri-food profits; firm-, industry-, and location effects; hierarchical linear model.

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confidence: 99%

What drives firm profitability? A multilevel approach to the Spanish agri-food sector

Zouaghi¹,

Sánchez

Hirsch

2017

Span. j. agric. res.

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“…Becker, Pasurka & Shadbegian (2013) find that the cost intensity for pollution abatement increases with establishment size. A paper that investigates a different type of environmental regulation in the water sector is Rassier & Earnhart (2015). Constructing a measure of environmental stringency, the authors estimate the effect of 2 We exclude the evaluation of the Porter hypothesis on the country or industry level from our considerations, e.g.…”

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Environmental Regulation and Sustainable Competitiveness: Evaluating the Role of Firm-Level Green Investments in the Context of the Porter Hypothesis

Stoever

Weche

2017

Environ Resource Econ

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“…Howarth et al (2000) discuss the positive effects of two voluntary participation environmental programmes in the USA. Rassier and Earnhart (2015) find for the USA that clean water regulation affects positively actual profitability outcomes but not expected profitability.…”

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Development and utilization of energy-related technologies, economic performance and the role of policy instruments

Arvanitis

Peneder

Rammer

et al. 2017

Journal of Cleaner Production

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThe present study investigates the effects of energy-related technologies on economic performance at firm level. We distinguish clearly between adoption and use of energy-related technologies (process innovation in the broad sense) and product innovation in energy-related fields. We take into consideration four energy-related policy instruments (and expected demand for energy-related new products and services). We investigate the possibility of indirect effects of policy on performance via adoption or innovation by interacting adoption and innovation variables with policy instrument dummies. We test our hypotheses not only for the pooled data but also separately for the three countries (Austria, Germany, Switzerland) that are taken into consideration in this studyWe find a positive direct effect of investment expenditures for energy-related technologies on labour productivity and a positive indirect effect of energy taxes via investment in energyrelated technologies. We find neither direct nor indirect effects of product innovation in energyrelated products on labour productivity. No differences among the three countries could be detected. JEL classification: O31

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Effects of environmental regulation on actual and expected profitability

Cited by 128 publications

References 76 publications

What drives firm profitability? A multilevel approach to the Spanish agri-food sector

What drives firm profitability? A multilevel approach to the Spanish agri-food sector

Environmental Regulation and Sustainable Competitiveness: Evaluating the Role of Firm-Level Green Investments in the Context of the Porter Hypothesis

Development and utilization of energy-related technologies, economic performance and the role of policy instruments

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