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Searching for the Profit in Pollution Prevention: Case Studies in the Corporate Evaluation of Environmental Opportunities

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  • Boyd, James

    ()
    (Resources for the Future)

Abstract

The concept of pollution prevention, or "P2," signifies a new, proactive environmental mindset that targets the causes, rather than the consequences, of polluting activity. While anecdotal evidence suggests that P2 opportunities exist and that many have been pursued, there is also the perception that the pace of P2 is far too slow. To explore that claim—and to shed light on barriers to P2 innovation—this paper presents case studies of industrial P2 projects that were in some way unsuccessful. While based on a very limited sample, the evidence contradicts the view that firms suffer from organizational weaknesses that make them unable to appreciate the financial benefits of P2 investments. Instead, the projects foundered because of significant unresolved technical difficulties, marketing challenges, and regulatory barriers. Based on evidence from the cases, the paper concludes with a discussion of environmental policy reforms likely to promote P2 innovation..

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Paper provided by Resources For the Future in its series Discussion Papers with number dp-98-30.

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Date of creation: 01 May 1998
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Handle: RePEc:rff:dpaper:dp-98-30

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  1. Holmstrom, Bengt & Ricart i Costa, Joan, 1986. "Managerial Incentives and Capital Management," The Quarterly Journal of Economics, MIT Press, vol. 101(4), pages 835-60, November.
  2. Rick Antle & Gary D. Eppen, 1985. "Capital Rationing and Organizational Slack in Capital Budgeting," Management Science, INFORMS, vol. 31(2), pages 163-174, February.
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Cited by:
  1. Dowlatabadi, Hadi & Boyd, David & MacDonald, Jamie, 2004. "Model, Model on the Screen, What's the Cost of Going Green?," Discussion Papers dp-04-17, Resources For the Future.
  2. Bahar Erbas & David Abler, 2008. "Environmental Policy with Endogenous Technology from a Game Theoretic Perspective: The Case of the US Pulp and Paper Industry," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 40(3), pages 425-444, July.
  3. Boyd, James & Manson, Cynthia, 2011. "Attributing Benefits to Voluntary Programs in EPA’s Office of Resource Conservation and Recovery: Challenges and Options," Discussion Papers dp-11-09, Resources For the Future.
  4. Boyd, James, 1998. "The Benefits of Improved Environmental Accounting: An Economic Framework to Identify Priorities," Discussion Papers dp-98-49, Resources For the Future.
  5. Keith Brouhle & Charles Griffiths & Ann Wolverton, 2004. "The Use of Voluntary Approaches for Environmental Policymaking in the U.S," NCEE Working Paper Series 200405, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised May 2004.

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