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Product-related environmental regulation and voluntary environmental actions : impacts of RoHS and REACH in Malaysia

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  • Arimura, Toshihide
  • Iguchi, Hakaru
  • Michida, Etsuyo

Abstract

Voluntary environmental actions, such as the adoption of ISO 14001, are gaining increasing attention in developing countries. This study examines the mechanism of ISO 14001 diffusion in a developing economy on the basis of a unique corporate survey of manufacturing sectors in Malaysia. Product-related environmental regulations, such as REACH, are contributing to this diffusion indirectly by promoting quality control standards such as ISO 9001. The importance of foreign direct investment and global value chains for ISO 14001 diffusion is also confirmed.

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File URL: http://ir.ide.go.jp/dspace/bitstream/2344/1317/1/ARRIDE_Discussion_No.454_arimura.pdf
File Function: First version, 2014
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Bibliographic Info

Paper provided by Institute of Developing Economies, Japan External Trade Organization(JETRO) in its series IDE Discussion Papers with number 454.

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Date of creation: Mar 2014
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Publication status: Published in IDE Discussion Paper. No. 454. 2014.3
Handle: RePEc:jet:dpaper:dpaper454

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Related research

Keywords: Malaysia; Environmental protection; Environmental policy; Industrial standards; International trade; PRERs (product-related environmental regulations); REACH; RoHS; ISO 14001; ISO 9001; Global value chain;

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  1. 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.
  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. Eskeland, Gunnar S. & Harrison, Ann E., 1997. "Moving to greener pastures : multinationals and the pollution-haven hypothesis," Policy Research Working Paper Series 1744, The World Bank.
  4. 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.
  5. Kanittha Tambunlertchai & Andreas Kontoleon & Madhu Khanna, 2013. "Assessing participation in voluntary environmental programmes in the developing world: the role of FDI and export orientation on ISO14001 adoption in Thailand," Applied Economics, Taylor & Francis Journals, vol. 45(15), pages 2039-2048, May.
  6. Ann E. Harrison & Brian J. Aitken, 1999. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela," American Economic Review, American Economic Association, vol. 89(3), pages 605-618, June.
  7. Khanna, Madhu & Damon, Lisa A., 1999. "EPA's Voluntary 33/50 Program: Impact on Toxic Releases and Economic Performance of Firms," Journal of Environmental Economics and Management, Elsevier, vol. 37(1), pages 1-25, January.
  8. Wilde, Joachim, 2000. "Identification of multiple equation probit models with endogenous dummy regressors," Economics Letters, Elsevier, vol. 69(3), pages 309-312, December.
  9. Matthew Potoski & Aseem Prakash, 2009. "Information asymmetries as trade barriers: ISO 9000 increases international commerce," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 28(2), pages 221-238.
  10. Grolleau, Gilles & Mzoughi, Naoufel & Pekovic, Sanja, 2012. "Green not (only) for profit: An empirical examination of the effect of environmental-related standards on employees’ recruitment," Resource and Energy Economics, Elsevier, vol. 34(1), pages 74-92.
  11. Dardati, Evangelina & Saygili, Meryem, 2012. "Multinationals and environmental regulation: are foreign firms harmful?," Environment and Development Economics, Cambridge University Press, vol. 17(02), pages 163-186, April.
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