The contribution of environmental regulations to the slowdown in productivity growth

Christainsen, Gregory B.; Haveman, Robert

doi:10.1016/0095-0696(81)90048-6

Cited by 175 publications

(98 citation statements)

References 2 publications

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“…In the earliest studies of environmental regulation, that almost exclusively analyse the productivity slowdown in the United States during the 1970s, a negative effect on productivity is found [1,2,6,11,19,21,36]. A negative effect is also found in some of the more contemporary studies [8,16,22,23,37,38].…”

Section: Previous Researchmentioning

confidence: 86%

“…But since the second half of the 1960s, an increasing concern has emerged regarding environmental pollution and, consequently, a large number of regulations restricting the emissions have been imposed. However, during the 1970s, the ascending regulatory stringency coincided with a number of recessions, stagflation, and a general slowdown in the rate of productivity increase, which inevitably led to a heated debate on whether these regulatory schemes were the actual cause behind this problematic economic development [1,2].…”

Section: Introductionmentioning

confidence: 99%

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Effect of Environmental Regulation Stringency on the Pulp and Paper Industry

Brolund

Lundmark

2017

Sustainability

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Abstract:The article investigates whether environmental regulations have affected productivity development and technological change in the European pulp and paper industry. A dynamic panel data approach is selected for analyzing a sample consisting of the pulp and paper industries in eight European countries. Industry total factor productivity for the period 1993-2009 is used as the dependent variable; it is explained by the intensities of environmental regulations for various types of pollutants, as well as by a number of other independent variables. The econometric results indicate that the regulation of nitrogen oxides is associated with productivity improvements with a one-year lag, whereas regulations regarding sulphur dioxide and carbon dioxide have not had any statistically significant impact. In line with the a priori expectations, the price of pulp is connected to a negative effect, while lagged R&D expenditures have had corresponding positive impacts. However, since stationary tests are asymptotic and the data series are quite short, strong conclusions regarding the actual causal effect of environmental policy could not be drawn. The results could therefore not be viewed as a proof of the so-called strong Porter hypothesis postulating that stringent well-designed environmental regulations increase productivity growth compared to a no-policy scenario.

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Section: Previous Researchmentioning

confidence: 86%

Section: Introductionmentioning

confidence: 99%

Effect of Environmental Regulation Stringency on the Pulp and Paper Industry

Brolund

Lundmark

2017

Sustainability

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“…The adjustments are based on finding producers' shadow values for all inputs and outputs to substitute for market prices in profits (or costs). Distortions considered have been those from imperfect competition (see for example the studies in Cowing and Stevenson, 1981, and more recently Basu and Fernald 2001), from underutilization of capacity (see Berndt and Fuss, 1986, and other papers in that special issue of the Journal of Econometrics), from economies of scale (Ohta 1975), from pollution abatement regulations (Denison 1979;Norsworthy, et al, 1979;Crandall 1981;Christiansen and Haveman, 1981;Pittman, 1983;Färe, et al, 1989;Conrad and Morrison, 1989), or from the existence of a common-property renewable resource (Capalbo, 1986). These producer-oriented studies focus on measuring technical change as a shift in the technology set.…”

Section: Notesmentioning

confidence: 99%

Productivity and Welfare

Fulginiti¹,

Perrin

2005

J Prod Anal

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Technical change is generally characterized by a rate and biases, both evaluated for given producer prices. This paper examines the potential discrepancy between this rate and the corresponding rate of consumer welfare change as measured by Allais distributable surplus. We postulate a general equilibrium context with various market failures (taxes, quotas, imperfect competition, and “poorly priced” commodities), and use comparative statics to express the rate of welfare change in terms of the rate and biases of the technical change. An elementary simulation model of a taxed economy suggests that the rate of welfare change may differ from the rate of technical change by as much as 50% under plausible circumstances. Copyright Springer Science+Business Media, Inc. 2005productivity, Allias surplus, general equilibrium, D2, D5, D6, O3,

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“…Despite these developments favoring environmental management, some researchers argued that environmental efforts may increase the cost burden, reduce the competitiveness of companies, and result in a decrease in productivity growth (Christainsen 1981;Walley and Whitehead 1994;Palmer et al 1995). However, today's market conditions bring GMA's basic principles as an important part of profit maximization and competitive advantage (Porter 1991;Porter and Van der Linde 1995a, b).…”

Section: The Changing Platform Of Thoughtmentioning

confidence: 99%

Evaluation of the evolution of green management with a Kuhnian perspective

Güner

2017

Bus Res

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The purpose of this study is to examine the evolutionary development of green management. To do this, first, Kuhn's ''paradigm'' concept has been operationalized and the development stages of a movement of thought were determined. The green management is then scrutinized within the framework of each of these stages and the impacts of environmentalism in management research and practice are examined. It is concluded that the crises in normal science, existence of a scientific community, the presence of common beliefs, values and norms, and the increasing anomalousness are strengths of the green management. However, the core position of profit orientation in business strategies weakens the green management.

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The contribution of environmental regulations to the slowdown in productivity growth

Cited by 175 publications

References 2 publications

Effect of Environmental Regulation Stringency on the Pulp and Paper Industry

Effect of Environmental Regulation Stringency on the Pulp and Paper Industry

Productivity and Welfare

Evaluation of the evolution of green management with a Kuhnian perspective

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