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Corporate environmental management in transition economies: The case of Central and Eastern Europe

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Author Info

  • Garcia, Jorge

    ()
    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Bluffstone, Randy

    ()
    (Department of Economics, Portland State University)

  • Sterner, Thomas

    ()
    (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract

We use firm-level data to study the adoption of Environmental Management Practices (EMPs) in the most polluting industrial sectors in Bulgaria, Hungary, Lithuania, Poland, Romania, and Slovakia during the 1990 – 1998 period when these countries were in a transition away from a centrally planned economy. Despite the stickiness of a long established managerial regime and the declines in industrial output during this period, around 42% of the firms in our sample adopted Environmental Plans (EPs) and/or established Environmental Departments (EDs). The analysis reveals that enforcement and public disclosure of the environmental performance of firms are the most important forces behind the implementation of both of these EMPs. Also, but to a lesser extent, export oriented firms and larger firms are prone to adoption. Finally, we use a methodology that clarifies some of the links between different EMPs not addressed in earlier studies. Notably, once a firm has decided to adopt (or not adopt) an ED, additional increases in enforcement do not to lead to EP implementation.

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File URL: http://hdl.handle.net/2077/21509
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Bibliographic Info

Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 411.

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Length: 24 pages
Date of creation: 04 Dec 2009
Date of revision:
Publication status: Published as Garcia, Jorge, Randy Bluffstone and Thomas Sterner, 'Corporate environmental management in transition economies: The case of Central and Eastern Europe' in Finance a uver - Czech Journal of Economics and Finance, 2009, pages 410-425.
Handle: RePEc:hhs:gunwpe:0411

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Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Keywords: Environmental Management; Bivariate Analysis; Central and Eastern Europe;

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  1. Randall Bluffstone & Thomas Sterner, 2006. "Explaining Environmental Management in Central and Eastern Europe," Comparative Economic Studies, Palgrave Macmillan, vol. 48(4), pages 619-640, December.
  2. Madhu Khanna & William Rose Q. Anton, 2002. "Corporate Environmental Management: Regulatory and Market-Based Incentives," Land Economics, University of Wisconsin Press, vol. 78(4), pages 539-558.
  3. J. David Brown & John S. Earle & Almos Telegdy, 2005. "The Productivity Effects of Privatization: Longitudinal Estimates from Hungary, Romania, Russia, and Ukraine," Upjohn Working Papers and Journal Articles 05-121, W.E. Upjohn Institute for Employment Research.
  4. Jeffrey M. Wooldridge, 2001. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262232197, December.
  5. 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.
  6. 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.
  7. Anton, W.R.Q.Wilma Rose Q. & Deltas, George & Khanna, Madhu, 2004. "Incentives for environmental self-regulation and implications for environmental performance," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 632-654, July.
  8. Hughes, Gordon, 1991. "Are the Costs of Cleaning Up Eastern Europe Exaggerated? Economic Reform and the Environment," Oxford Review of Economic Policy, Oxford University Press, vol. 7(4), pages 106-36, Winter.
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