Corporate environmental management in transition economies: The case of Central and Eastern Europe
Abstract
We use firm-level data to study the adoption of Environmental Management Practices
(EMPs) in the most polluting industrial sectors in Bulgaria, Hungary, Lithuania, Poland,
Romania, and Slovakia during the 1990 – 1998 period when these countries were in a
transition away from a centrally planned economy. Despite the stickiness of a long
established managerial regime and the declines in industrial output during this period, around
42% of the firms in our sample adopted Environmental Plans (EPs) and/or established
Environmental Departments (EDs). The analysis reveals that enforcement and public
disclosure of the environmental performance of firms are the most important forces behind
the implementation of both of these EMPs. Also, but to a lesser extent, export oriented firms
and larger firms are prone to adoption. Finally, we use a methodology that clarifies some of
the links between different EMPs not addressed in earlier studies. Notably, once a firm has
decided to adopt (or not adopt) an ED, additional increases in enforcement do not to lead to
EP implementation.
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Date
2009-12-04Author
Garcia, Jorge
Bluffstone, Randy
Sterner, Thomas
Keywords
Environmental Management
Bivariate Analysis
Central and Eastern Europe
Publication type
report
ISSN
1403-2465
Series/Report no.
Working Papers in Economics
411
Language
eng