IDEAS home Printed from https://ideas.repec.org/p/rff/dpaper/dp-07-31.html
   My bibliography  Save this paper

Is a Voluntary Approach an Effective Environmental Policy Instrument? A Case for Environmental Management Systems

Author

Listed:
  • Arimura, Toshi

    () (Resources for the Future)

  • Hibiki, Akira
  • Katayama, Hajime

Abstract

Using Japanese facility-level data from an Organisation for Economic Co-operation and Development survey, we estimate the effects of implementation of ISO14001 and publication of environmental reports on the facilities’ environmental performance. While most previous studies focused on an index of emissions toxicity, this study examines three areas of impacts, none of which have been explored in the literature: natural resource use, solid waste generation, and wastewater effluent. The study is also unique in that the effectiveness of ISO14001 is considered in relation to environmental regulations. Our findings are summarized as follows. First, both ISO14001 and report publication help reduce all three impacts; the former appears more effective in all areas except wastewater. Second, environmental regulations do not weaken the effect of ISO14001. Third, assistance programs offered by local governments—a voluntary approach—promote facilities’ adoption of ISO14001. These findings suggest that governments can use command-and-control and voluntary approaches concurrently.

Suggested Citation

  • Arimura, Toshi & Hibiki, Akira & Katayama, Hajime, 2007. "Is a Voluntary Approach an Effective Environmental Policy Instrument? A Case for Environmental Management Systems," Discussion Papers dp-07-31, Resources For the Future.
  • Handle: RePEc:rff:dpaper:dp-07-31
    as

    Download full text from publisher

    File URL: http://www.rff.org/RFF/documents/RFF-DP-07-31.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Geweke, John, 1989. "Bayesian Inference in Econometric Models Using Monte Carlo Integration," Econometrica, Econometric Society, vol. 57(6), pages 1317-1339, November.
    2. Rennings, Klaus & Ziegler, Andreas, 2004. "Determinants of Environmental Innovations in Germany: Do Organizational Measures Matter? A Discrete Choice Analysis at the Firm Level," ZEW Discussion Papers 04-30, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    3. Bhattacharya, Debopam, 2004. "Seemingly unrelated regressions with identical regressors: a note," Economics Letters, Elsevier, vol. 85(2), pages 247-255, November.
    4. Keane, Michael P, 1994. "A Computationally Practical Simulation Estimator for Panel Data," Econometrica, Econometric Society, vol. 62(1), pages 95-116, January.
    5. Eric W. Welch & Allan Mazur & Stuart Bretschneider, 2000. "Voluntary behavior by electric utilities: Levels of adoption and contribution of the climate challenge program to the reduction of carbon dioxide," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 19(3), pages 407-425.
    6. Nakamura, Masao & Takahashi, Takuya & Vertinsky, Ilan, 2001. "Why Japanese Firms Choose to Certify: A Study of Managerial Responses to Environmental Issues," Journal of Environmental Economics and Management, Elsevier, vol. 42(1), pages 23-52, July.
    7. Anton, W.R.Q.Wilma Rose Q. & Deltas, George & Khanna, Madhu, 2004. "Incentives for environmental self-regulation and implications for environmental performance," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 632-654, July.
    8. 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.
    9. Khanna, Madhu & Damon, Lisa A., 1999. "EPA's Voluntary 33/50 Program: Impact on Toxic Releases and Economic Performance of Firms," Journal of Environmental Economics and Management, Elsevier, vol. 37(1), pages 1-25, January.
    10. Matthew Potoski & Aseem Prakash, 2005. "Covenants with weak swords: ISO 14001 and facilities' environmental performance," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 24(4), pages 745-769.
    11. Dasgupta, Susmita & Hettige, Hemamala & Wheeler, David, 2000. "What Improves Environmental Compliance? Evidence from Mexican Industry," Journal of Environmental Economics and Management, Elsevier, vol. 39(1), pages 39-66, January.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    environmental management systems; ISO14001; environmental reports; voluntary actions; governmental assistance programs; environmental impacts; discrete choice model; endogeneity; GHK simulator;

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rff:dpaper:dp-07-31. 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: (Webmaster). General contact details of provider: http://edirc.repec.org/data/degraus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.