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Climate policy, environmental performance, and profits
Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE).
Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE). Umeå University, Faculty of Social Sciences, Centre for Regional Science (CERUM).
2015 (English)In: Journal of Productivity Analysis, ISSN 0895-562X, E-ISSN 1573-0441, Vol. 44, no 3, 225-235 p.Article in journal (Refereed) Published
Abstract [en]

In this study we investigate how firm level environmental performance (EP) affects firm level economic performance measured as profit efficiency (PE) in a stochastic profit frontier setting. Analyzing firms in Swedish manufacturing 1990–2004, results show that EP induced by environmental policy is not a determinant of PE, while voluntary or market driven EP seem to have a significant and positive effect on firm PE in most sectors. The evidence generally supports the idea that good EP is also good for business, as long as EP is not brought on by policy measures, in this case a CO2 tax. Thus, the results provide no general support for the Porter hypothesis.

Place, publisher, year, edition, pages
Springer, 2015. Vol. 44, no 3, 225-235 p.
Keyword [en]
CO2 tax, Environmental performance index, Profit technical efficiency, Stochastic frontier analysis, The Porter hypothesis
National Category
Economics
Identifiers
URN: urn:nbn:se:umu:diva-88441DOI: 10.1007/s11123-014-0396-9ISI: 000363247100002OAI: oai:DiVA.org:umu-88441DiVA: diva2:715695
Note

Special Issue: SI

Available from: 2014-05-06 Created: 2014-05-06 Last updated: 2017-12-05Bibliographically approved

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Lundgren, TommyMarklund, Per-Olov
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