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Motivations for Proactive Environmental Management

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  • Madhu Khanna

    ()
    (Department of Agricultural and Consumer Economics, University of Illinois, 1301 W, Gregory Drive Urbana, IL 61801, USA)

  • Cameron Speir

    ()
    (Cameron Speir, NOAA Fisheries, Southwest Fisheries Science Center, Fisheries Ecology Division, 110 Shaffer Road, Santa Cruz, CA 95060, USA)

Abstract

This paper examines the extent to which there are differential incentives that motivate the adoption of environmental management practices (EMPs) and pollution prevention (P2) methods. We analyze the role of internal drivers such as managerial attitudes towards the environment and external pressures using both observed characteristics of facilities and perceived pressures. We estimate a structural equation model using survey data from facilities in Oregon that involves simultaneous estimation of the latent dependent and explanatory variables and the two regression equations explaining adoption behavior of EMPs and P2. We find that perceived regulatory pressures and managerial attitudes have a statistically significant impact on the adoption of both EMPs and P2 practices, while market pressures were significant in influencing the adoption of EMPs but not P2 methods. Furthermore; we find that both external regulatory pressures and internal managerial attitudes had a larger impact in motivating adoption by facilities that did not view environmental issues as being a significant concern as compared to facilities that did.

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Bibliographic Info

Article provided by MDPI, Open Access Journal in its journal Sustainability.

Volume (Year): 5 (2013)
Issue (Month): 6 (June)
Pages: 2664-2692

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Handle: RePEc:gam:jsusta:v:5:y:2013:i:6:p:2664-2692:d:26534

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Related research

Keywords: environmental management practices; pollution prevention; structural equation modeling; factor analysis;

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References

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  1. Madhu Khanna & Surender Kumar, 2011. "Corporate Environmental Management and Environmental Efficiency," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 50(2), pages 227-242, October.
  2. Donna Ramirez Harrington & Madhu Khanna & George Deltas, 2008. "Striving to be green: the adoption of total quality environmental management," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 40(23), pages 2995-3007.
  3. Madhu Khanna & George Deltas & Donna Harrington, 2009. "Adoption of Pollution Prevention Techniques: The Role of Management Systems and Regulatory Pressures," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 44(1), pages 85-106, September.
  4. 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.
  5. Khanna, Madhu, 2001. " Non-mandatory Approaches to Environmental Protection," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 291-324, July.
  6. Sarkis, Joseph & Zhu, Qinghua & Lai, Kee-hung, 2011. "An organizational theoretic review of green supply chain management literature," International Journal of Production Economics, Elsevier, vol. 130(1), pages 1-15, March.
  7. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
  8. Dasgupta, Susmita & Hettige, Hemamala & Wheeler, David, 2000. "What Improves Environmental Compliance? Evidence from Mexican Industry," Journal of Environmental Economics and Management, Elsevier, vol. 39(1), pages 39-66, January.
  9. 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.
  10. Deltas, George & Harrington, Donna Ramirez & Khanna, Madhu, 2006. "Green Management And The Nature Of Technical Innovation," Annual Meeting, May 25-28, 2006, Montreal, Quebec 34185, Canadian Agricultural Economics Society.
  11. Henriques, Irene & Sadorsky, Perry, 1996. "The Determinants of an Environmentally Responsive Firm: An Empirical Approach," Journal of Environmental Economics and Management, Elsevier, vol. 30(3), pages 381-395, May.
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