Abstract
The dispute on the impact of environmental legislation on international trade, national competitiveness, technological innovativeness and companies' profitability is as yet undecided. The predominant positions will be illustrated in the following meso/micro-study detailing the impact (European) environmental legislation has on the competitiveness of a large chemical company. This study draws important conclusions and outlines remarkable implications by employing an instrumental distinction between short-term costs/benefits and longer-term innovativeness. It can be argued persuasively that environmental legislation has created a rat race among the major players at the (longer-term) cost of smaller companies. Copyright © 1999 John Wiley & Sons, Ltd and ERP Environment.
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