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Abatement investments and green goodwill

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  • Bengt Kristrom
  • Tommy Lundgren

Abstract

This paper develops and estimates a dynamic model that links profits to green goodwill. Assuming that abatement investments generate green goodwill, and using data from the Swedish pulp industry, we are able to test the effects of green goodwill on firm level output price and profits. The results suggests that Swedish pulp plant output prices and profits may be positively related to changes in green goodwill. Furthermore, no evidence is found to support the existence of adjustment costs due to abatement investments.

Suggested Citation

  • Bengt Kristrom & Tommy Lundgren, 2003. "Abatement investments and green goodwill," Applied Economics, Taylor & Francis Journals, vol. 35(18), pages 1915-1921.
    • Handle: RePEc:taf:applec:v:35:y:2003:i:18:p:1915-1921
    DOI: 10.1080/00036840310001628026
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    References listed on IDEAS

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