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Promoting Pollution Prevention in Small Businesses: Costs and Benefits of the Enviroclub Initiative

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  • Paul Lanoie
  • Alexandra Rochon-Fabien

Abstract

The Enviroclub initiative was developed by three federal government agenciesCanada Economic Development for Quebec Regions, Environment Canada and the National Research Council Canadaand launched in 2001 to assist small and medium-sized enterprises (SMEs) in improving their profitability and competitiveness through enhanced environmental performance. An Enviroclub consists of a group of 10 15 SMEs involved in training sessions on environmental management and carrying out at least one profitable in-plant pollution prevention project. The objective of this article is to provide a cost benefit analysis (CBA) of this original initiative in order to inform policy makers as to the social desirability of such programs. One of the main social benefits of this initiative is to reduce emissions of various pollutants, so that one of our largest challenges is to place a value on these environmental improvements. To do so, we use the environmental value transfer method to obtain values from previous relevant studies. We conduct our CBA at three different levels: we consider the costs and benefits first for the whole of society, then from the participating firms' point of view and, finally, from the governments' perspective. We conclude that, whichever perspective we choose, the Enviroclub initiative has been highly profitable. L'initiative des Enviroclubs a été développée par trois agences fédérales Développement économique Canada pour les régions du Québec, Environnement Canada et le Conseil national de recherche du Canada et lancée en 2001 pour aider les petites et moyennes entreprises (PMEs) à améliorer leur profitabilité et compétitivité via une meilleure performance environnementale. Un Enviroclub consiste en un groupe de 10 à 15 PMEs impliquées dans des séances de formation en gestion de l'environnement et engagées à mettre en uvre au moins un projet rentable de prévention de la pollution. L'objectif de cet article est de fournir une analyse coûts-bénéfices de cette initiative originale de façon à éclairer les décideurs publics quant au bien-fondé de tels programmes. Un des plus importants bénéfices sociaux de cette initiative est de réduire les émissions de plusieurs types de polluants, ce qui fait que l'un des défis principaux de cette recherche est de trouver la valeur monétaire de ces améliorations environnementales. Pour ce faire, nous ferons du transfert de valeurs environnementales pour obtenir des valeurs qui viennent d'études existantes pertinentes. Nous menons notre analyse à trois niveaux. Premièrement, nous considérons les coûts et les bénéfices pour l'ensemble de la société, ensuite pour les firmes qui participent aux programmes et enfin, pour les instances gouvernementales concernées. Nous concluons que, peu importe la perspective choisie, l'initiative des Enviroclubs s'avère rentable.

Suggested Citation

  • Paul Lanoie & Alexandra Rochon-Fabien, 2011. "Promoting Pollution Prevention in Small Businesses: Costs and Benefits of the Enviroclub Initiative," CIRANO Working Papers 2011s-28, CIRANO.
  • Handle: RePEc:cir:cirwor:2011s-28
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    File URL: http://www.cirano.qc.ca/files/publications/2011s-28.pdf
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    References listed on IDEAS

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    Cited by:

    1. Paramonova, Svetlana & Thollander, Patrik, 2016. "Energy-efficiency networks for SMEs: Learning from the Swedish experience," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 295-307.
    2. Stefan Ambec & Mark A. Cohen & Stewart Elgie & Paul Lanoie, 2013. "The Porter Hypothesis at 20: Can Environmental Regulation Enhance Innovation and Competitiveness?," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, pages 2-22.

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    Keywords

    cost-benefit analysis; SMEs; environment training; environmental performance; analyse coûts-bénéfices; PMEs; formation environnementale; performance environnementale;

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