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The Pollution Release and Transfer Register System in the U.S. and Japan: An Analysis of Productivity

Author

Listed:
  • Fujii, Hidemichi
  • Managi, Shunsuke
  • Kawahara, Hiromitsu

Abstract

This study analyzes productivity in the context of environmental regulations on the provision and dissemination of environmental information. Our study measures total factor productivity (TFP) by considering the emission of toxic chemical substances in the U.S. and Japan and the two countries’ corresponding policies. We apply the directional distance function to measure the Luenberger productivity indicator to estimate TFP. The data for U.S. and Japanese manufacturing firms include 386 firms over 1999 and 2007 and 466 firms over 2001 to 2008, respectively. This paper focuses on nine industries with highest pollution intensity: rubber and plastic, chemicals and allied products, paper and pulp, steel and non-ferrous metal, fabricated metal, industrial machinery, electric products, transportation equipment, and precision instruments. These nine sectors are categorized into two industry groups: the basic materials group and the processing and assembly group. The results show that productivity improved in all industrial sectors in the U.S. and Japan from 2001 to 2007. In particular, the electric product industry improved rapidly after 2002 for both countries. The enforcement of RoHS and the REACH directive in Europe might be one of the reasons for these increases. These stringent restrictions on toxic chemical substances give U.S. companies that export to the European market a strong incentive to treat their toxic chemical substances.

Suggested Citation

  • Fujii, Hidemichi & Managi, Shunsuke & Kawahara, Hiromitsu, 2019. "The Pollution Release and Transfer Register System in the U.S. and Japan: An Analysis of Productivity," MPRA Paper 92235, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:92235
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    References listed on IDEAS

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    Cited by:

    1. Boon Liat Lee & Clevo Wilson & Carl A. Pasurka & Hidemichi Fujii & Shunsuke Managi, 2017. "Sources of airline productivity from carbon emissions: an analysis of operational performance under good and bad outputs," Journal of Productivity Analysis, Springer, vol. 47(3), pages 223-246, June.
    2. Hidemichi Fujii & Kazuma Edamura & Koichi Sumikura & Yoko Furusawa & Naomi Fukuzawa & Shunsuke Managi, 2015. "How enterprise strategies are related to innovation and productivity change: an empirical study of Japanese manufacturing firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 24(3), pages 248-262, April.
    3. Fujii, Hidemichi & Managi, Shunsuke, 2015. "Optimal production resource reallocation for CO2 emissions reduction in manufacturing sectors," MPRA Paper 64703, University Library of Munich, Germany.
    4. Toshi H.Arimura & Shinji Kaneko & Shunsuke Managi & Takayoshi Shinkuma & Masashi Yamamoto & Yuichiro Yoshida, 2016. "Political Economy of Voluntary Approaches: A Lesson from Environmental Policies," Working Papers e107, Tokyo Center for Economic Research.
    5. Fujii, Hidemichi & Managi, Shunsuke, 2019. "Decomposition analysis of sustainable green technology inventions in China," Technological Forecasting and Social Change, Elsevier, vol. 139(C), pages 10-16.
    6. Fujii, Hidemichi & Cao, Jing & Managi, Shunsuke, 2016. "Firm-level environmentally sensitive productivity and innovation in China," Applied Energy, Elsevier, vol. 184(C), pages 915-925.
    7. Hidemichi Fujii & Kazuyuki Iwata & Shinji Kaneko & Shunsuke Managi, 2013. "Corporate Environmental and Economic Performance of Japanese Manufacturing Firms: Empirical Study for Sustainable Development," Business Strategy and the Environment, Wiley Blackwell, vol. 22(3), pages 187-201, March.
    8. Fujii, Hidemichi & Managi, Shunsuke, 2015. "Trends in corporate environmental management studies and databases," MPRA Paper 66531, University Library of Munich, Germany.
    9. Fujii, Hidemichi & Shirakawa, Seiji, 2015. "Decomposition analysis of green chemical technology inventions from 1971 to 2010 in Japan," MPRA Paper 62790, University Library of Munich, Germany.
    10. Fujii, Hidemichi & Assaf, A. George & Managi, Shunsuke & Matousek, Roman, 2015. "Did the Financial Crisis Affect Environmental Efficiency? Evidence from the Japanese Manufacturing Sector," MPRA Paper 66363, University Library of Munich, Germany.
    11. Fujii, Hidemichi & Managi, Shunsuke, 2012. "Productive inefficiency analysis and toxic chemical substances in US and Japanese manufacturing sectors," MPRA Paper 92655, University Library of Munich, Germany.

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    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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