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Environmental performance, manufacturing sectors and firm growth: structural factors and dynamic relationships

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  • Giulio Cainelli

    ()

  • Massimiliano Mazzanti

    ()

  • Roberto Zoboli

    ()

Abstract

This paper investigates the correlation between sectoral environmental performance and firm growth, using a large data set of 61,219 Italian manufacturing firms and sector environmental–economic accounts. Specifically, the paper investigates the extent to which the correlation between (past) emissions intensity and environmental regulation influences firms’ economic growth. Our results show a trade-off: structurally, higher emissions intensity gives firms more freedom and relaxes the constraints on growth. This is a trade-off which rejects our hypothesis that economic and environmental performance might dynamically be positively correlated. However, although lower emissions intensity does not pay in terms of promoting turnover, there seems to be a non-linear relation characterising the economic growth–environmental performance relationship. Transforming the prevalent trade-off in a possible joint dynamics in which poor environmental performances hampers firm growth and investment in greener technologies might be associated with positive economic performance, thus becomes possible. Copyright Springer Japan 2013

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Bibliographic Info

Article provided by Society for Environmental Economics and Policy Studies - SEEPS in its journal Environmental Economics and Policy Studies.

Volume (Year): 15 (2013)
Issue (Month): 4 (October)
Pages: 367-387

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Handle: RePEc:spr:envpol:v:15:y:2013:i:4:p:367-387

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Related research

Keywords: Firm growth; Manufacturing; Emissions intensity; Environmental performance; Gibrat model; NAMEA; C23; D21; O32; Q55;

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Cited by:
  1. Gilli, Marianna & Mancinelli, Susanna & Mazzanti, Massimiliano, 2014. "Innovation complementarity and environmental productivity effects: Reality or delusion? Evidence from the EU," Ecological Economics, Elsevier, vol. 103(C), pages 56-67.
  2. Claudia Ghisetti & Francesco Quatraro, 2014. "Is green knowledge improving environmental productivity? Sectoral Evidence from Italian Regions," SEEDS Working Papers 1014, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised May 2014.

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