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Firm ownership patterns and motives for voluntary pollution control

Author

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  • Jon D. Harford

    (Department of Economics, Cleveland State University, Cleveland, OH 44115, USA)

Abstract

From the viewpoint of standard theory, firms have sometimes seemed to overcontrol pollution. However, Gordon (1990) and others have noted that the more diversified investors are the greater the degree of internalization of externalities. This paper explores the implications of diversification for the firm's choice of pollution in comparison with alternative explanations of voluntary pollution control, such as profit-seeking through regulatory influence, and altruism. The paper also addresses issues arising from the spatial aspects of pollution, and the relationship between stockholder and managerial incentives for pollution control. © 1998 John Wiley & Sons, Ltd.

Suggested Citation

  • Jon D. Harford, 1997. "Firm ownership patterns and motives for voluntary pollution control," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 18(6), pages 421-431.
  • Handle: RePEc:wly:mgtdec:v:18:y:1997:i:6:p:421-431
    DOI: 10.1002/(SICI)1099-1468(199709)18:6<421::AID-MDE844>3.0.CO;2-9
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    References listed on IDEAS

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    Cited by:

    1. Aloys Prinz & Tsjalle Burg, 2013. "Public bads and private firms: efficiency and sustainability with different allocations of voting rights," European Journal of Law and Economics, Springer, vol. 36(3), pages 423-445, December.
    2. Scott Marchi & James Hamilton, 2006. "Assessing the Accuracy of Self-Reported Data: an Evaluation of the Toxics Release Inventory," Journal of Risk and Uncertainty, Springer, vol. 32(1), pages 57-76, January.

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