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The environmental performance of firms: The role of foreign ownership, training, and experience

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  • Cole, Matthew A.
  • Elliott, Robert J.R.
  • Strobl, Eric

Abstract

In this paper we extend the debate on the environmental implications of foreign direct investment in developing countries by examining a new mechanism through which foreign influence can affect the environmental performance of firms. We focus on the extent to which key workers who have had previous training or experience in a foreign owned firm transfer and utilise their knowledge gained to the benefit of the local environment. To this end we use detailed firm-level data on manufacturing firms in Ghana. Our econometric results suggest that the foreign training of a firm's decision maker does reduce fuel use, particularly so in foreign owned firms. Foreign ownership per se does not influence fuel use or total energy use but is found to increase electricity use, perhaps the cleanest form of energy used by Ghanaian firms.

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Bibliographic Info

Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 65 (2008)
Issue (Month): 3 (April)
Pages: 538-546

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Handle: RePEc:eee:ecolec:v:65:y:2008:i:3:p:538-546

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Web page: http://www.elsevier.com/locate/ecolecon

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References

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Citations

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Cited by:
  1. Svetlana Batrakova & Ronald Davies, 2010. "Is there an environmental benefit to being an exporter? Evidence from firm level data," The Institute for International Integration Studies Discussion Paper Series iiisdp322, IIIS, revised Mar 2010.
  2. Cole, Matthew A. & Elliott, Robert J.R. & Okubo, Toshihiro & Zhou, Ying, 2013. "The carbon dioxide emissions of firms: A spatial analysis," Journal of Environmental Economics and Management, Elsevier, vol. 65(2), pages 290-309.
  3. Facundo Albornoz & Matthew A. Cole & Robert J. R. Elliott & Marco G. Ercolani, 2009. "In Search of Environmental Spillovers," The World Economy, Wiley Blackwell, vol. 32(1), pages 136-163, 01.
  4. Richard Perkins & Eric Neumayer, 2009. "How do domestic attributes affect international spillovers of CO2-efficiency?," Grantham Research Institute on Climate Change and the Environment Working Papers 8, Grantham Research Institute on Climate Change and the Environment.
  5. Massimiliano Mazzanti & Davide Antonioli & Susanna Mancinelli, 2011. "Are Environmental Innovations Embedded within High-Performance Organizational Changes?," Working Papers 201115, University of Ferrara, Department of Economics.
  6. Jing Lan & Alistair Munro, 2012. "Environmental Compliance and Human Capital: Evidence from Chinese Industrial Firms," GRIPS Discussion Papers 12-05, National Graduate Institute for Policy Studies.

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