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Estimating the Impact on Efficiency of the Adoption of a Voluntary Environmental Standard: An Empirical Study of the Global Copper Mining Industry

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  • Lise Tole

    () (Department of Economics, University of Strathclyde)

  • Gary Koop

    () (Department of Economics, University of Strathclyde)

Abstract

This paper uses data on the worldÂ's copper mining industry to measure the impact on efficiency of the adoption of the ISO 14001 environmental standard. Anecdotal and case study literature suggests that fiÂ…rms are motivated to adopt this standard so as to achieve greater efficiency through changes in operating procedures and processes. Using plant level panel data from 1992-2007 on most of the worldÂ's industrial copper mines, the study uses stochastic frontier methods to investigate the effects of ISO adoption. The variety of models used in this study Â…find that adoption either tends to improve efficiency or has no impact on efficiency, but no evidence is found that ISO adoption decreases efficiency.

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Bibliographic Info

Paper provided by University of Strathclyde Business School, Department of Economics in its series Working Papers with number 1136.

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Length: 29 pages
Date of creation: Jun 2011
Date of revision:
Publication status: Published
Handle: RePEc:str:wpaper:1136

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Keywords: ISO 14001 environmental standard; Â…firm performance; stochastic frontier cost function; copper mining industry;

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