Determinants of Environmental Performance in the Brazilian Industrial Sector
This study will analyze the determinants of environmental performance in the Brazilian industrial sector. It uses a database conducted by the Brazilian National Confederation of Industries inquiring about questions on environmental management over 325 medium and large firms referred to the year 1997. We have been able to test three proxies of environmental performance, such as: a weighted average number of environmental control practices, environmental investments and operational cost ratios, controlling for actual data on market incentives and enforcement pressures as well as for declared motivations. Our results suggest that the Harrington paradox can be observed in Brazil when a compliance-dependent regime motivates firms to compliance with low sanction level. Consistent with results in the main literature, our study confirms that, apart from some expected characteristics of the firm, as size, sector and foreign ties, demands from communities and market incentives are also very influential determinants. Cost savings on inputs and subsidized credit are found equally important. Based on that, we recommend flexible instruments on pollution control that capture the firm¿s differentials in characteristics and compliance levels as well as dissemination of information on environmental control and related cost saving opportunities.
|Date of creation:||Apr 2002|
|Contact details of provider:|| Postal: 1300 New York Avenue, NW, Washington, DC 20577|
Web page: http://www.iadb.org/publications/
More information through EDIRC
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.:
- Mary E. Deily & Wayne B. Gray, 1989.
"Enforcement of pollution regulations in a declining industry,"
8912, Federal Reserve Bank of Cleveland.
- Deily, Mary E. & Gray, Wayne B., 1991. "Enforcement of pollution regulations in a declining industry," Journal of Environmental Economics and Management, Elsevier, vol. 21(3), pages 260-274, November.
- Pargal, Sheoli & Wheeler, David, 1996. "Informal Regulation of Industrial Pollution in Developing Countries: Evidence from Indonesia," Journal of Political Economy, University of Chicago Press, vol. 104(6), pages 1314-1327, December.
- Dion, Catherine & Lanoie, Paul & Laplante, Benoit, 1998. "Monitoring of Pollution Regulation: Do Local Conditions Matter?," Journal of Regulatory Economics, Springer, vol. 13(1), pages 5-18, January.
- Harrington, Winston, 1988. "Enforcement leverage when penalties are restricted," Journal of Public Economics, Elsevier, vol. 37(1), pages 29-53, October.
- Hamilton James T., 1995. "Pollution as News: Media and Stock Market Reactions to the Toxics Release Inventory Data," Journal of Environmental Economics and Management, Elsevier, vol. 28(1), pages 98-113, January.
- Motta, Ronaldo Ser A Da & Huber, Richard M. & Ruitenbeek, H. Jack, 1999. "Market based instruments for environmental policymaking in Latin America and the Caribbean: lessons from eleven countries," Environment and Development Economics, Cambridge University Press, vol. 4(02), pages 177-201, May.
- Gray, Wayne B. & Deily, Mary E., 1996. "Compliance and Enforcement: Air Pollution Regulation in the U.S. Steel Industry," Journal of Environmental Economics and Management, Elsevier, vol. 31(1), pages 96-111, July.
When requesting a correction, please mention this item's handle: RePEc:idb:brikps:9061. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Monica Bazan)
If references are entirely missing, you can add them using this form.