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Is ISO 14001 a gateway to more advanced voluntary action? The case of green supply chain management

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Author Info

  • Arimura, Toshi H.
  • Darnall, Nicole
  • Katayama, Hajime

Abstract

Using Japanese facility-level data, we estimate the effects of ISO 14001 certification on the promotion of more advanced practices, namely green supply chain management (GSCM). Our results show that ISO 14001 promotes GSCM practices. Facilities with environmental management systems (EMS) certified to ISO 14001 are 40% more likely to assess their suppliers' environmental performance and 50% more likely to require that their suppliers undertake specific environmental practices. Further, government programs that encourage voluntary EMS adoption indirectly promote GSCM practices. These programs increase the probabilities that facilities will assess their suppliers' environmental performance and require suppliers to undertake specific environmental practices by 7% and 8%, respectively. Combined, these findings suggest that there may be significant but previously unnoticed spillover effects of ISO 14001 and government promotion of voluntary action.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Environmental Economics and Management.

Volume (Year): 61 (2011)
Issue (Month): 2 (March)
Pages: 170-182

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Handle: RePEc:eee:jeeman:v:61:y:2011:i:2:p:170-182

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Web page: http://www.elsevier.com/locate/inca/622870

Related research

Keywords: Voluntary actions Positive spillover Environmental management systems ISO 14001 Green supply chain management Government assistance programs Environmental impacts Discrete choice model Endogeneity;

References

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  1. Rondinelli, Dennis & Vastag, Gyula, 2000. "Panacea, common sense, or just a label?: The value of ISO 14001 environmental management systems," European Management Journal, Elsevier, vol. 18(5), pages 499-510, October.
  2. Nakamura, Masao & Takahashi, Takuya & Vertinsky, Ilan, 2001. "Why Japanese Firms Choose to Certify: A Study of Managerial Responses to Environmental Issues," Journal of Environmental Economics and Management, Elsevier, vol. 42(1), pages 23-52, July.
  3. Magali Delmas & Arturo Keller, 2005. "Free riding in voluntary environmental programs: The case of the U.S. EPA WasteWise program," Policy Sciences, Springer, vol. 38(2), pages 91-106, September.
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  6. Barla, Philippe, 2005. "ISO 14001 Certification and Environmental Performance in Quebec's Pulp and Paper Industry," Cahiers de recherche 0503, GREEN.
  7. Anton, Wilma Rose Q. & Deltas, George & Khanna, Madhu, 2002. "Incentives for Environmental Self-Regulation and Implications for Environmental Performance," Working Papers 02-0120, University of Illinois at Urbana-Champaign, College of Business.
  8. Keane, Michael P, 1994. "A Computationally Practical Simulation Estimator for Panel Data," Econometrica, Econometric Society, vol. 62(1), pages 95-116, January.
  9. Arimura, Toshi & Hibiki, Akira & Katayama, Hajime, 2007. "Is a Voluntary Approach an Effective Environmental Policy Instrument? A Case for Environmental Management Systems," Discussion Papers dp-07-31, Resources For the Future.
  10. Matthew Potoski & Aseem Prakash, 2005. "Covenants with weak swords: ISO 14001 and facilities' environmental performance," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 24(4), pages 745-769.
  11. Geweke, John, 1989. "Bayesian Inference in Econometric Models Using Monte Carlo Integration," Econometrica, Econometric Society, vol. 57(6), pages 1317-39, November.
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Citations

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Cited by:
  1. Donna Ramirez Harrington, 2013. "Effectiveness Of State Pollution Prevention Programs And Policies," Contemporary Economic Policy, Western Economic Association International, vol. 31(2), pages 255-278, 04.
  2. Harrington, Donna Ramirez, 2012. "Two-stage adoption of different types of pollution prevention (P2) activities," Resource and Energy Economics, Elsevier, vol. 34(3), pages 349-373.
  3. Michida, Etsuyo & Nabeshima, Kaoru, 2012. "Role of supply chains in adopting product related environmental regulations : case studies of Vietnam," IDE Discussion Papers 343, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  4. Kimitaka Nishitani & Nurul Jannah & Hardinsyah Ridwan & Shinji Kaneko, 2013. "The Influence of Voluntary and Mandatory Environmental Performance on Financial Performance: An Empirical Study of Indonesian Firms," Discussion Paper Series DP2013-01, Research Institute for Economics & Business Administration, Kobe University.
  5. Inoue, Emiko & Arimura, Toshi H. & Nakano, Makiko, 2013. "A new insight into environmental innovation: Does the maturity of environmental management systems matter?," Ecological Economics, Elsevier, vol. 94(C), pages 156-163.
  6. Bazilian, Morgan & Rogner, Holger & Howells, Mark & Hermann, Sebastian & Arent, Douglas & Gielen, Dolf & Steduto, Pasquale & Mueller, Alexander & Komor, Paul & Tol, Richard S.J. & Yumkella, Kandeh K., 2011. "Considering the energy, water and food nexus: Towards an integrated modelling approach," Energy Policy, Elsevier, vol. 39(12), pages 7896-7906.

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