What determines compliance with cleaner production? An appraisal of the tanning industry in Sialkot, Pakistan.

Abstract

Leather tanneries which produce significant amounts of solid waste, effluents, and emissions are a major contributor to industrial waste. A cleaner production program was launched by the government of Pakistan to implement the cleaner production measures for tanneries of Sialkot from 1999 to 2005. The main objective of this study is to identify the impact of a cleaner production program, along with other determinants of a cleaner production in the leather industry. The study analyses firm-level primary data collected from leather tanneries in Sialkot. The primary data were collected from tanneries in Sialkot. The econometric analysis is conducted using the Poisson regression analysis. Overall results show that there is no significant impact of cleaner production in 2015, while the panel data results indicate that the effect of cleaner production support by CPC on cleaner production practices diminished once the support came to an end. The other main factor is firm size, which indicates the financial position of the firm; international and regulator pressures are major determinants of the adoption of cleaner production measures. The analysis also indicates that there is higher probability of large firms adopting a cleaner production in comparison with small ones. Export orientation of firms is another important determinant of cleaner production. The enforcement of the environment compliance laws also has positive effect. The compliance with cleaner production measures is quite low, at 6.4 out of 19 cleaner production practice measures. There is a need to adopt measures that are environmentally friendly and are favorable towards both labor health and product quality, which are important for the sustainable growth of the tanning industry.