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Corporate Participation in Voluntary Environmental Programs in India: Determinants and Deterrence

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  • Kumar, Surender
  • Shetty, Shivananda

Abstract

This article examines the motivations for firms in India to participate in voluntary environmental programs (VEPs) using a unique data set of cement, power and steel industry for the year 2012. It examines the effects of regulatory, societal, market and internal factors in influencing voluntary environmental behavior. To this objective we estimate both, ordinal (Ordered Probit) and cardinal (Poisson) models. We find that the firm size, its location, export orientation, and intangible valuation have a positive and significant relationship with the number of VEPs undertaken by the firm. The MNC status of the firm has no impact while the debt equity ratio and average age of the firm has negative impact on the adoption of VEPs.

Suggested Citation

  • Kumar, Surender & Shetty, Shivananda, 2018. "Corporate Participation in Voluntary Environmental Programs in India: Determinants and Deterrence," Ecological Economics, Elsevier, vol. 147(C), pages 1-10.
    • Handle: RePEc:eee:ecolec:v:147:y:2018:i:c:p:1-10
    DOI: 10.1016/j.ecolecon.2017.12.029
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    Cited by:

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    2. Qinglong Shao, 2022. "Exploring the promoting effect of working time reduction on life satisfaction using Germany as a case study," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-8, December.
    3. Juan J. Martínez Hernández & Patricia S. Sánchez‐Medina & René Díaz‐Pichardo, 2021. "Business‐oriented environmental regulation: Measurement and implications for environmental policy and business strategy from a sustainable development perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 507-521, January.
    4. Artitzar Erauskin‐Tolosa & Eugenio Zubeltzu‐Jaka & Iñaki Heras‐Saizarbitoria & Olivier Boiral, 2020. "ISO 14001, EMAS and environmental performance: A meta‐analysis," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1145-1159, March.
    5. Jiang, Zhenyu & Wang, Zongjun & Lan, Xiao, 2021. "How environmental regulations affect corporate innovation? The coupling mechanism of mandatory rules and voluntary management," Technology in Society, Elsevier, vol. 65(C).

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    More about this item

    Keywords

    Corporate environmental management; Voluntary programs; Firm characteristics; India;
    All these keywords.

    JEL classification:

    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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