The determinants of EST adoption by manufacturing plants in developing countries
This article reports on the findings of a survey undertaken in late 2001-early 2002 on the determinants of environmentally sound technology (EST) adoption by 98 plants in eight developing countries. We review the literature on technology diffusion and technology capabilities as well as empirical studies with an exclusive focus on developing countries that explicitly addressed environmental performance or EST adoption to formulate our heuristic model that guided our investigation. We examine in some detail the determinants of both prevention and abatement technologies, which has seldom been investigated, in developing countries. In full recognition of literature that cites a host of reasons that cause plants to adopt EST we take into account both contextual and plant-specific factors. We use an ordered choice model that revealed that plant-specific factors assume a pre-dominant role in explaining the adoption of higher order of complexity EST. Plant-specific factors, specifically environmental commitment, technological capabilities, and ownership, and market factors, specifically foreign involvement and water and energy price perception, matter in determining the type of technological response and thus in explaining the adoption of higher-order complexity EST. Two governmental factors, regulatory implementation strategy and international donor assistance, also play a role in the adoption of EST. However, civil society, in particular community pressure that has been identified as an important determinant of environmental performance, does not play a role because of the way the dependent variable is constructed to capture higher orders of technological complexity.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
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.:
- Blackman, Allen & Bannister, Geoffrey J., 1998. "Community Pressure and Clean Technology in the Informal Sector: An Econometric Analysis of the Adoption of Propane by Traditional Mexican Brickmakers," Journal of Environmental Economics and Management, Elsevier, vol. 35(1), pages 1-21, January.
- Gangadharan, Lata, 2006.
"Environmental compliance by firms in the manufacturing sector in Mexico,"
Elsevier, vol. 59(4), pages 477-486, October.
- Lata Gangadharan, 2003. "Environmental Compliance by Firms in the Manufacturing Sector in Mexico," Department of Economics - Working Papers Series 881, The University of Melbourne.
- Dasgupta, Susmita & Laplante, Benoit & Mamingi, Nlandu & Wang, Hua, 2001. "Inspections, pollution prices, and environmental performance: evidence from China," Ecological Economics, Elsevier, vol. 36(3), pages 487-498, March.
- 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.
- Anton, Wilma Rose Q. & Deltas, George & Khanna, Madhu, 2002. "Incentives for Environmental Self-Regulation and Implications for Environmental Performance," Working Papers 02-0120, University of Illinois at Urbana-Champaign, College of Business.
- Seroa da Motta, Ronaldo, 2006. "Analyzing the environmental performance of the Brazilian industrial sector," Ecological Economics, Elsevier, vol. 57(2), pages 269-281, May.
- 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.
- Hettige, Hemamala & Huq, Mainul & Pargal, Sheoli & Wheeler, David, 1996. "Determinants of pollution abatement in developing countries: Evidence from South and Southeast Asia," World Development, Elsevier, vol. 24(12), pages 1891-1904, December.
- Reppelin-Hill, Valerie, 1999. "Trade and Environment: An Empirical Analysis of the Technology Effect in the Steel Industry," Journal of Environmental Economics and Management, Elsevier, vol. 38(3), pages 283-301, November.
- Doonan, Julie & Lanoie, Paul & Laplante, Benoit, 2005. "Determinants of environmental performance in the Canadian pulp and paper industry: An assessment from inside the industry," Ecological Economics, Elsevier, vol. 55(1), pages 73-84, October.
- Aden, Jean & Kyu-hong, Ahn & Rock, Michael T., 1999. "What is Driving the Pollution Abatement Expenditure Behavior of Manufacturing Plants in Korea?," World Development, Elsevier, vol. 27(7), pages 1203-1214, July.
- Lall, Sanjaya, 1992. "Technological capabilities and industrialization," World Development, Elsevier, vol. 20(2), pages 165-186, February.
- Nick Johnstone & Pascale Scapecchi & Bjarne Ytterhus & Rolf Wolff, 2004. "The firm, environmental management and environmental measures: Lessons from a survey of European manufacturing firms," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 47(5), pages 685-707.
- Henny Romijn, 2001. "Technology Support for Small-scale Industry in Developing Countries: A Review of Concepts and Project Practices," Oxford Development Studies, Taylor & Francis Journals, vol. 29(1), pages 57-76.
- Andrews, Donald W K, 1988. "Chi-Square Diagnostic Tests for Econometric Models: Theory," Econometrica, Econometric Society, vol. 56(6), pages 1419-1453, November.
- Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-685, May. Full references (including those not matched with items on IDEAS)