Abstract
The paper revisits the Porter-Wagner dilemma about the association between environmental management (EM) and firm performance (FP). The context of informal Micro, Small and Medium Enterprises (MSMEs) provides an interesting case since they are away from regulatory scrutiny or corporate/social obligations. The study resorts to labor productivity as the measure of FP and EM is represented by the various solid waste management practices (WMPs) adopted by the informal enterprises. Using the latest available cross-sectional data on un-incorporated firms by National Sample Survey Office (NSSO) 73rd round 2015-16, we found the positive impact of WMPs was higher in the case of more productive firms in the quantile, indicating the relevance of the Porter-Wagner dilemma. The direction of causality was further validated using the propensity score matching technique by decomposing the average treatment effect.
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