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Does ISO14001 raise firms f awareness of environmental protection? |Case from Vietnam

Author

Listed:
  • Bin Ni

    (Graduate School of Economics, Osaka University)

  • Hanae Tamechika

    (Graduate School of Economics, Nagoya City University)

  • Tsunehiro Otsuki

    (Graduate School of Economics, Osaka University)

  • Keiichiro Honda

    (Department of Administration, Prefectural University of Kumamoto)

Abstract

Environmental protection is an inevitable issue that developing countries all have to deal with during the process of inviting foreign direct investment (FDI). However, high correlation between FDI and pollution doesn ft necessarily indicate that foreign firms are to blame. In this paper, we apply firm-level panel data in Vietnam and unique information on waste discharge to show that foreign firms are actually more active to acquire ISO14001, a voluntary environmental standard. And the adoption will in turn improve firms f performance in waste control. It also increases firms f welfare as well as their productivity level. This paper provides strong evidence that firms f efforts towards corporate social responsibility will eventually benefit themselves as well.

Suggested Citation

  • Bin Ni & Hanae Tamechika & Tsunehiro Otsuki & Keiichiro Honda, 2016. "Does ISO14001 raise firms f awareness of environmental protection? |Case from Vietnam," Discussion Papers in Economics and Business 16-05, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  • Handle: RePEc:osk:wpaper:1605
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    File URL: http://www2.econ.osaka-u.ac.jp/library/global/dp/1605.pdf
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    References listed on IDEAS

    as
    1. Bui, Linda T.M. & Kapon, Samuel, 2012. "The impact of voluntary programs on polluting behavior: Evidence from pollution prevention programs and toxic releases," Journal of Environmental Economics and Management, Elsevier, vol. 64(1), pages 31-44.
    2. Eskeland, Gunnar S. & Harrison, Ann E., 2003. "Moving to greener pastures? Multinationals and the pollution haven hypothesis," Journal of Development Economics, Elsevier, vol. 70(1), pages 1-23, February.
    3. Kim, Eun-Hee & Lyon, Thomas P., 2011. "Strategic environmental disclosure: Evidence from the DOE's voluntary greenhouse gas registry," Journal of Environmental Economics and Management, Elsevier, vol. 61(3), pages 311-326, May.
    4. Fredriksson, Per G. & List, John A. & Millimet, Daniel L., 2003. "Bureaucratic corruption, environmental policy and inbound US FDI: theory and evidence," Journal of Public Economics, Elsevier, vol. 87(7-8), pages 1407-1430, August.
    5. Arimura, Toshi H. & Darnall, Nicole & Katayama, Hajime, 2011. "Is ISO 14001 a gateway to more advanced voluntary action? The case of green supply chain management," Journal of Environmental Economics and Management, Elsevier, vol. 61(2), pages 170-182, March.
    6. Cole, Matthew A., 2004. "Trade, the pollution haven hypothesis and the environmental Kuznets curve: examining the linkages," Ecological Economics, Elsevier, vol. 48(1), pages 71-81, January.
    7. Thomas P. Lyon & John W. Maxwell, 2008. "Corporate Social Responsibility and the Environment: A Theoretical Perspective," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 2(2), pages 240-260, Summer.
    8. Kanittha Tambunlertchai & Andreas Kontoleon & Madhu Khanna, 2013. "Assessing participation in voluntary environmental programmes in the developing world: the role of FDI and export orientation on ISO14001 adoption in Thailand," Applied Economics, Taylor & Francis Journals, vol. 45(15), pages 2039-2048, May.
    9. Mani, Muthukumara & Jha, Shreyasi, 2006. "Trade liberalization and the environment in Vietnam," Policy Research Working Paper Series 3879, The World Bank.
    10. Arimura, Toshihide & Iguchi, Hakaru & Michida, Etsuyo, 2014. "Product-related environmental regulation and voluntary environmental actions : impacts of RoHS and REACH in Malaysia," IDE Discussion Papers 454, Institute of Developing Economies, Japan External Trade Organization(JETRO).
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    More about this item

    Keywords

    FDI; ISO14001; Vietnam; environmental protection;

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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