Environmental Protection of Foreign Firms in Germany: Does the country of origin matter?
AbstractOnly recently have the aspects of pollution and environmental protection entered into the empirical literature about international firm activities. The present paper is the first firm-level study on the link between foreign ownership and environmental protection in Germany. We find that, ceteris paribus, foreign owned firms in Germany are more likely to invest in environmental protection. They also invest on a larger scale in terms of add-on measures as well as integrated measures. These results are robust against different measures, different time periods, different control groups, and selection issues arising from fractional response data. Once we control for productivity levels, the differences become less straightforward. However, the higher probability of foreign firms' making general as well as integrated environmental protection investments and the tilt of their composition towards integrated measures remain. We cannot find any support for differences among foreign firms by country of origin. This can be interpreted as support for the new institutionalist hypothesis of international convergence of management practices in the field of environmental management due to normative pressure and de facto standards at the global level.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Lüneburg, Institute of Economics in its series Working Paper Series in Economics with number 267.
Length: 44 pages
Date of creation: Apr 2013
Date of revision:
Contact details of provider:
Web page: http://leuphana.de/institute/ivwl.html
Environmental protection; foreign ownership; country of origin; multinational enterprises; manufacturing; Germany;
Find related papers by JEL classification:
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Costs; Distributional Effects; Employment Effects
- Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
- Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-04-27 (All new papers)
- NEP-CSE-2013-04-27 (Economics of Strategic Management)
- NEP-ENV-2013-04-27 (Environmental Economics)
- NEP-EUR-2013-04-27 (Microeconomic European Issues)
- NEP-RES-2013-04-27 (Resource Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Svetlana Batrakova & Ronald Davies, 2010.
"Is there an environmental benefit to being an exporter? Evidence from firm level data,"
The Institute for International Integration Studies Discussion Paper Series
iiisdp322, IIIS, revised Mar 2010.
- Svetlana Batrakova & Ronald Davies, 2012. "Is there an environmental benefit to being an exporter? Evidence from firm-level data," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 148(3), pages 449-474, September.
- Svetlana Batrakova & Ronald B Davies, 2010. "Is there an environmental benefit to being an exporter? Evidence from firm level data," Working Papers 201007, School Of Economics, University College Dublin.
- Friebel, Guido & Heinz, Matthias, 2012. "Media Slant Against Foreign Owners: Downsizing," IZA Discussion Papers 6859, Institute for the Study of Labor (IZA).
- Eskeland, Gunnar S. & Harrison, Ann E., 2003.
"Moving to greener pastures? Multinationals and the pollution haven hypothesis,"
Journal of Development Economics,
Elsevier, vol. 70(1), pages 1-23, February.
- 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.
- Gunnar A. Eskeland & Ann E. Harrison, 2002. "Moving to Greener Pastures? Multinationals and the Pollution Haven Hypothesis," NBER Working Papers 8888, National Bureau of Economic Research, Inc.
- Stefanie Haller & Liam Murphy, 2012.
"Corporate Expenditure on Environmental Protection,"
Environmental & Resource Economics,
European Association of Environmental and Resource Economists, vol. 51(2), pages 277-296, February.
- Friebel, Guido & Heinz, Matthias, 2012. "Media slant against foreign owners: Downsizing," CEPR Discussion Papers 9192, C.E.P.R. Discussion Papers.
- Alan Collins & Richard I. D. Harris, 2005. "The Impact Of Foreign Ownership And Efficiency On Pollution Abatement Expenditure By Chemical Plants: Some Uk Evidence," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(5), pages 747-768, November.
- Marc J. Melitz, 2003.
"The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity,"
Econometric Society, vol. 71(6), pages 1695-1725, November.
- Mark J. Melitz, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," NBER Working Papers 8881, National Bureau of Economic Research, Inc.
- Melitz, Marc J, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," CEPR Discussion Papers 3381, C.E.P.R. Discussion Papers.
- Alan Collins & Richard I. D. Harris, 2002.
"Does Plant Ownership Affect the Level of Pollution Abatement Expenditure?,"
University of Wisconsin Press, vol. 78(2), pages 171-189.
- Collins, A. & Harris, R.I.D., 2001. "Does Plant Ownership Affect the level of Pollution Abatement Expenditure?," Papers 138, Portsmouth University - Department of Economics.
- Esmeralda A. Ramalho & Joaquim J.S. Ramalho & José M.R. Murteira, 2009.
"Alternative estimating and testing empirical strategies for fractional regression models,"
CEFAGE-UE Working Papers
2009_08, University of Evora, CEFAGE-UE (Portugal).
- Esmeralda A. Ramalho & Joaquim J.S. Ramalho & José M.R. Murteira, 2011. "Alternative Estimating And Testing Empirical Strategies For Fractional Regression Models," Journal of Economic Surveys, Wiley Blackwell, vol. 25(1), pages 19-68, 02.
- Kaiser, Kai & Schulze, Günther G., 2003. "International Competition and Environmental Expenditures: Empirical Evidence from Indonesian Manufacturing Plants," HWWA Discussion Papers 222, Hamburg Institute of International Economics (HWWA).
- Anne Tempel & Peter Walgenbach, 2007. "Global Standardization of Organizational Forms and Management Practices? What New Institutionalism and the Business-Systems Approach Can Learn from Each Other," Journal of Management Studies, Wiley Blackwell, vol. 44(1), pages 1-24, 01.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Wagner).
If references are entirely missing, you can add them using this form.