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The role of negotiating tools in the environmental policy mix instruments: determinants and effects of Environmental Agreement

Author

Listed:
  • Francesco Testa

    () (Istituto di Management - Scuola Superiore Sant’Anna, Pisa)

  • Natalia M. Gusmerotti

    () (Istituto di Management - Scuola Superiore Sant’Anna, Pisa)

  • D. Amirante

    (Second University of Naples, Viale Lincoln 5, Caserta, Italy)

  • Marco Frey

    () (Istituto di Management - Scuola Superiore Sant’Anna, Pisa)

Abstract

Environmental Agreement (EA) is an instruments of political response to the need of protecting and improving environmental quality. EAs cover a wide arena of topics, not easily definable and classifiable, which also involve several institutions. In order to provide a further contribution to the actual debate on determinants and effects of voluntary agreements, we apply a rigorous multivariate statistical approach, using data from over 4,000 manufacturing facilities operating in many sectors in seven OECD countries to test the following propositions: i) participation to a voluntary environmental agreement improves firm’s environmental performance; ii) which external stakeholders influence an organization to participate in an environmental agreement. The econometric analysis shows that the participation to an environmental agreement significantly reduce the impact of the most common environmental aspects of an organization and it is influenced by several external influence groups.

Suggested Citation

  • Francesco Testa & Natalia M. Gusmerotti & D. Amirante & Marco Frey, 2012. "The role of negotiating tools in the environmental policy mix instruments: determinants and effects of Environmental Agreement," Working Papers 201202, Scuola Superiore Sant'Anna of Pisa, Istituto di Management.
  • Handle: RePEc:sse:wpaper:201202
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    References listed on IDEAS

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    1. Arora Seema & Cason Timothy N., 1995. "An Experiment in Voluntary Environmental Regulation: Participation in EPA's 33/50 Program," Journal of Environmental Economics and Management, Elsevier, vol. 28(3), pages 271-286, May.
    2. Signe Anthon & Serge Garcia & Anne Stenger, 2006. "Incentive Contracts for Natura 2000 Implementation: A Mixed Model of Adverse Selection and Moral Hazard," Working Papers - Cahiers du LEF 2006-06, Laboratoire d'Economie Forestiere, AgroParisTech-INRA.
    3. Segerson, Kathleen & Miceli, Thomas J., 1998. "Voluntary Environmental Agreements: Good or Bad News for Environmental Protection?," Journal of Environmental Economics and Management, Elsevier, vol. 36(2), pages 109-130, September.
    4. Blanco, Ester & Lozano, Javier & Rey-Maquieira, Javier, 2009. "A dynamic approach to voluntary environmental contributions in tourism," Ecological Economics, Elsevier, vol. 69(1), pages 104-114, November.
    5. 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.
    6. Anna Alberini & Kathleen Segerson, 2002. "Assessing Voluntary Programs to Improve Environmental Quality," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 22(1), pages 157-184, June.
    7. Grepperud, Sverre, 2002. "Voluntary environmental agreements: bargaining over more than emissions," European Journal of Political Economy, Elsevier, vol. 18(3), pages 545-559, September.
    8. Seema Arora & Timothy N. Cason, 1996. "Why Do Firms Volunteer to Exceed Environmental Regulations? Understanding Participation in EPA's 33/50 Program," Land Economics, University of Wisconsin Press, vol. 72(4), pages 413-432.
    9. 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.
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    Cited by:

    1. Massimo Battaglia & Francesco Testa & Lara Bianchi & Fabio Iraldo & Marco Frey, 2014. "Corporate Social Responsibility and Competitiveness within SMEs of the Fashion Industry: Evidence from Italy and France," Sustainability, MDPI, Open Access Journal, vol. 6(2), pages 1-22, February.
    2. repec:kap:jbuset:v:147:y:2018:i:2:d:10.1007_s10551-015-2960-2 is not listed on IDEAS

    More about this item

    Keywords

    environmental agreement; environmental performance; stakeholder.;

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law

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