Differences In Environmental Performance Research Articles

Policy Implementation Inconsistency and Emission Leakage: Evidence from The Closure of Polluting Firms.

Public policies often fail to address the unintended behavior of regulated firms and are therefore inconsistent in their implementation, resulting in ineffectiveness. In the process of environmental policy, policy implementation inconsistencies also exist, which is known as emission leakage. Existing studies on the topic focus more on spatial dimension and less attention to time dimension. The reasons for emission leakage over time are two: regulatory laxness and inefficiencies. In this study, we examine whether emission leakage occurs during enterprises' end-of-life cycles. Based on unique high-frequency facility-level monitoring data, we construct a difference-in-differences (DID) model to investigate differences in environmental performance between hazardous chemical production firms in the process of closing and those in the same industry within 20 kilometers. This study finds no emission leakage problem in the processes of relocation and closure, and the concentration of chemical oxygen demand (COD) discharged declines by 28.53 percent. This result is mainly due to top-down regulatory requirements. Nevertheless, policymakers should remain aware of emission leakage when formulating environmental policies and create more substantial supervision to prevent potential leakage.

Family business ownership and cleaner production: Moderation by company size and family management

Recent research suggests that the relationship between family business ownership and cleaner production is contingent. This article makes two contributions to this scientific literature. First, the authors conjecture that the relationship between family business ownership and cleaner production (measured by energy and water consumption, waste disposal and environmental performance of suppliers) is weaker for large firms than for small firms. Second, the authors surmise that the involvement of family members in management moderates the relationship between family business ownership and cleaner production in a non-linear rather than linear way. Based on a sample of 3,816 European companies, the authors find support for both hypotheses. The results imply that the difference in environmental performance between family owned and non-family owned enterprises is largest for small companies managed by a combination of family and non-family members.

Environmental Performance of Food and Beverage Firms in Merger and Acquisition Deals

Abstract We build upon existing theories of merger and acquisition (M&A) to examine the differences in environmental performance between targets and acquirers in the Food and Beverage processing (F&B) industry. In a cream-skimming strategy, acquiring a firm with better environmental performance may add to the acquirer’s existing green efforts and improve their environmental capabilities. In a turnaround strategy, an acquirer may buy businesses from a dirtier firm and later bring them up to the buyer’s environmental standard. Among a set of 13 M&A deals in the F&B industry, we identify deals where targets have poorer or better environmental performance (toxic chemical management) than their acquirers. Our finding suggests that, among the given set of firms, there is some evidence of improvements in the toxic chemical management rate of targets and acquirers.

Long-term risk assessments comparing environmental performance of different types of sanitary landfills

Landfilling of non-pretreated, mixed municipal solid and similar waste remains a major method of waste management in many parts of the world today, particularly in developing countries. Modern dry-type and bioreactor landfills are considered to be relatively safe facilities in contrast to less engineered sanitary landfills. However, highly-engineered landfills are often not applicable in low-income countries because of their high cost. Performance of low-cost types of sanitary landfills deserve further exploration, because uncontrollable dumpsites pose real long-term threats to aquifers and the most reliable means of improving the situation is by upgrading these sites into technically similar, but environmentally safe facilities. Risk assessments can provide some insight into differences in environmental performance between major types of low-cost and high-cost landfills simulating the essential landfill processes. The risk of contamination at a presumed aquifer that resides directly below a presumed landfill was quantitatively assessed in this study comparing long-term environmental performances of four different types of facilities. A risk assessment software tool which explicitly enables inclusion of uncertainty present in the estimates to generate results with a wide range of possible outcomes was used to fulfill this purpose. It was demonstrated that contaminants derived from a modern, dry-type landfill would likely leech into an aquifer with the greatest impact occurring several decades after landfill closure. However, a specifically designed and properly operated, passive semiaerobic above-ground landfill was shown to be a comparatively safe facility.

Relationship between Positive Environmental Disclosures and Environmental Performance: An Empirical Investigation of the Greenwashing Sin of the Hidden Trade‐off

SummaryFirms make positive discretionary disclosures about their environmental efforts in order to signify attention to the environmental impacts of their operations. On the one hand, firms may choose to make these disclosures to deflect attention away from other activities that may contribute negatively to their environmental performance (i.e., greenwashing in the form of the “sin of the hidden trade‐off ”). On the other hand, firms making these disclosures may legitimately improve their overall environmental performance. Our study empirically addresses the following question: Do firms that make positive discretionary environmental disclosures improve their overall environmental performance more than the firms that do not make such disclosures? Specifically, because press announcements have been shown to be a popular medium for positive discretionary disclosures, we examine the relationship between announcements in the press of firms’ environmental efforts beyond compliance, and suitably weighted‐aggregated firm‐level releases of the range of pollutants reported to the U.S. Environmental Protection Agency's Toxics Release Inventory (TRI). We employ matching methods (coarsened exact matching and propensity score matching) that account for potential sources of endogeneity, including the relationship between firms’ prior environmental performance and their propensity to disclose environmental information. Our findings from the matching methods provide encouraging evidence that greenwashing in the form of the sin of the hidden trade‐off does not appear to be prevalent. Additionally, our post hoc analysis explores factors based on the content of disclosures and industry, that may help explain differences in environmental performance among the firms making the disclosures.

Environmental sustainability of liquid food packaging: Is there a gap between Danish consumers' perception and learnings from life cycle assessment?

The environmental impact of packaging has already been studied since the early development of the life cycle assessment (LCA) methodology, and today an extensive amount of studies exists. LCAs inform policy makers and guide companies in developing more environmentally sustainable packaging. From both a policy and a business perspective it is also relevant to understand what citizens and consumers recognize as being an environmentally sustainable packaging. Does perceived environmental sustainability align with the results of LCAs? And if not, where do consumers go wrong?In this study, we investigate how well-educated young consumers living in Denmark understand the environmental sustainability of five different kinds of packaging for liquid food (milk, beer, soft drink, olive oil and skinned tomatoes) based on an on-line survey and qualitative interviews. The results are compared with a streamlined LCA we performed for packaging of beer and soft drinks, and they are validated by means of comparative LCAs of these five product categories published in scientific literature.The results of the consumer research show that consumers assess the environmental sustainability of the tested types of packaging primarily based on the material type and on what they can personally do at the disposal stage. The consumers covered in this study do, in general, not consider the impacts of production and of transport. Amongst the investigated packaging types, bio-based types and glass are perceived as the most environmentally sustainable ones, and plastic in general is perceived least favourable. Laminated cartons receive a mixed perception. LCA results show that plastic – and especially laminated cartons – can be environmentally preferable solutions, even though they may be difficult to recycle. Our streamlined LCA on beer and soft drink shows that there is a significant difference in environmental performance between one-way glass and refillable glass, but consumers seem not to be aware of this difference. Our findings show i) that there is a gap between Danish consumers' perception of environmental sustainability of packaging and LCA results, and ii) that consumers have limited knowledge of sustainability-related eco-labels. In order to close these gaps, actions are needed both from producers, retailers and policy makers. The final aim of such improvement efforts should be to give to the consumers the possibility to make choices based on better information.

Modelling regional environmental efficiency differentials of dairy farms on the island of Ireland

Environmental pressures associated with nitrogen (N) and phosphorus (P) are likely to be an important policy issue on the island of Ireland, made up of Northern Ireland and the Republic of Ireland following the abolition of the European Union (EU) milk quota system in 2015. In this study, we assessed the environmental performance of dairy farms in terms of N and P efficiency in the four regions of the island of Ireland using a novel environmental data envelopment analysis (DEA) approach. The determinants of environmental efficiency were also analysed in a second stage analysis, using a truncated linear regression model with bootstrapped non-parametric DEA environmental efficiency estimates as the dependent variable. We find regional differences in environmental performance across the four regions of Ireland with greater nutrient surpluses in Northern Ireland compared to the three regions in the Republic of Ireland. However, computed indices from the environmental DEA technology which simultaneously accounts for the expansion of desirable outputs (milk and other outputs) and reduction in undesirable outputs (N and P surpluses), showed higher environmental performance index for Northern Ireland compared to the regions of the Republic of Ireland. Utilized agricultural area, forage grazed per hectare and adoption of milk recording were found to be significant factors influencing environmental efficiency in the Republic of Ireland while only forage grazed per hectare was statistically significant for Northern Ireland.

Dynamic environmental efficiency assessment for wastewater treatment plants

Purpose Life cycle assessment (LCA) and data envelopment analysis (DEA) have been combined in numerous occasions in order to identify the environmental efficiency of multiple units. In many cases, important differences in environmental performance have been identified among the units, referred to as decision-making units (DMUs). However, most studies have been limited to 1 year of assessment, preventing the study from identifying if efficiency values were linked to a specific trend of each DMU through time or to random annual changes. Therefore, the current study delves into the temporal variations in efficiency using DEA.

Australia is 'free to choose' economic growth and falling environmental pressures.

Over two centuries of economic growth have put undeniable pressure on the ecological systems that underpin human well-being. While it is agreed that these pressures are increasing, views divide on how they may be alleviated. Some suggest technological advances will automatically keep us from transgressing key environmental thresholds; others that policy reform can reconcile economic and ecological goals; while a third school argues that only a fundamental shift in societal values can keep human demands within the Earth's ecological limits. Here we use novel integrated analysis of the energy-water-food nexus, rural land use (including biodiversity), material flows and climate change to explore whether mounting ecological pressures in Australia can be reversed, while the population grows and living standards improve. We show that, in the right circumstances, economic and environmental outcomes can be decoupled. Although economic growth is strong across all scenarios, environmental performance varies widely: pressures are projected to more than double, stabilize or fall markedly by 2050. However, we find no evidence that decoupling will occur automatically. Nor do we find that a shift in societal values is required. Rather, extensions of current policies that mobilize technology and incentivize reduced pressure account for the majority of differences in environmental performance. Our results show that Australia can make great progress towards sustainable prosperity, if it chooses to do so.

ARE THE FOREIGN CONTROLLED FIRMS MORE ENVIRONMENTALLY SUSTAINABLE THAN DOMESTICALLY CONTROLLED ONES?

Do foreign controlled firms exhibit a different environmental performance from domestically controlled ones for ‘developed countries’? The aim of this paper is to examine whether foreign firms are more environmentally sustainable than their domestic counterparts, i.e., the Pollution Halo Hypothesis generally analysed in developing countries. By using firm-level panel data over the time period 2002-2006, this study explores the differences in environmental performance -measured by air and water pollution emissions—of Italian dirty-firms with different types of ownership: Foreign multinational enterprises (FMNEs), National multinational enterprises (NMNEs) and Domestic enterprises (DOMESTICs). Econometric results show that foreign ownership does not influence air and water pollution emissions, suggesting the lack of evidence of a Pollution Halo Hypothesis in developed countries.

Incorporating the carbon footprint to measure industry context and energy consumption effect on environmental performance of business operations

Three scopes of carbon footprint have become the most suitable methods to measure green house gas (GHG) emissions from business operating activities. Carbon footprint information can enable firms to effectively improve their environmental performance. This paper attempts to develop an approach that incorporates the three scopes of carbon footprint into a data envelopment analysis model to evaluate environmental performance. A research sample is used from top Fortune 500 companies participating in the carbon disclosure project. The results provide empirical evidence that adjustment of the current fossil fuel-based energy structure significantly affects electricity indirect GHG emissions. The results also show that there are significant differences in environmental performance between industries. Governments should focus on designing improved policies and regulations for each separate industry, especially the materials industry.

Environmental assessment of marine fuels: liquefied natural gas, liquefied biogas, methanol and bio-methanol

The combined effort of reducing the emissions of sulphur dioxide, nitrogen oxides and greenhouse gases to comply with future regulations and reduce impact on climate change will require a significant change in ship propulsion. One alternative is to change fuels. In this study we compare the life cycle environmental performance of liquefied natural gas (LNG), liquefied biogas (LBG), methanol and bio-methanol. We also highlight a number of important aspects to consider when selecting marine fuels. A transition to use of LNG or methanol produced from natural gas would significantly improve the overall environmental performance. However, the impact on climate change is of the same order of magnitude as with use of heavy fuel oil. It is only the use of LBG and bio-methanol that has the potential to reduce the climate impact. The analysis did not show any significant differences in environmental performance between methane and methanol when produced from the same raw materials, but the performance of the methanol engines are yet to be validated.

What Explains the Environmental Performance of Fortune 500 Companies?

We examine differences in environmental performance among Fortune 500 companies by asking: what factors might explain differences between poor and strong performance? Does industry matter? And what can explain discrepancies in firms’ accounts of their performance when compared to the actual performance? In this exploratory, theory generating study we apply an embedded mixed method approach to address these questions by using four data sets: (a) firm’s environmental performance as reported by Newsweek statistics, (b) firm’s safety performance as reported to OSHA, (c) a survey conducted among top executives of the Fortune 500 companies, and (d) interviews with one of the top 5 executives in Fortune 500 companies. We find that high-performing manufacturing companies have higher ability to transfer knowledge across functional boundaries and source and exploit new knowledge. They also seek to challenge the status quo to show elevated concerns for employee safety. Poorly performing manufacturing companies share...

The Role of Ownership in Environmental Performance: Evidence from Coalbed Methane Development

One way coalbed methane production differs from traditional oil and gas extraction is in the large quantities of produced water. This water must be disposed of for production to occur. Surface discharge has proven to be a low-cost alternative; regulations are in place to protect surface water quality. This paper investigates the effects of alternative ownership regimes on regulatory compliance. A unique dataset linking coalbed methane wells in Wyoming to water disposal permit violations is used to explore differences in environmental performance across severed and unified minerals. Empirical analysis of these data suggest that ownership does impact environmental compliance behavior. Most violations occur on split estate. Federal split estate wells have more severe violations, though not necessarily more of them. Federal unified wells performed best, with fewer and less serious violations. Wells on private land have more, though not necessarily more severe, violations. These results suggest some room for policy proposals accounting for alternative ownership regimes.

ENVIRONMENTAL LIFE CYCLE ASSESSMENT OF ANALOGOUS NEW ZEALAND ‘EXEMPLAR HOUSE’ DESIGNS

ABSTRACT To reduce the environmental impact of residential construction a holistic understanding of the building life cycle is necessary. Life Cycle Assessment (LCA) is well suited to the task of calculating the impacts associated with building products and systems so it is used in this study to assess building material options for a typical New Zealand house design. The LCA and underlying data adhered to international standards and framework. Four house designs comparing concrete and timber flooring, steel and timber framing and fibre cement and timber cladding were investigated. The different designs were modified to have the same thermal performance using NZS4214:2006. Consequently the difference in environmental performance can be attributed to the wooden building products. Substituting steel with timber framing results in a 20–30% decrease in global warming emissions, eutrophication and photochemical oxidation, but an increase in land and water use. Exchanging concrete with timber flooring results in...

Demolish or refurbish – Environmental benefits of housing conservation

Climate change and energy efficiency are some of the most pressing issues facing China today. With its economic growth since 1978, the government has struggled to contain environmental damages and social unrest related to the economy’s rapid transformation. With the rapid growth in population and urbanization the demand for housing has escalated and traditional housing has been under threat of demolition to make way for new construction. Traditional housing is generally considered wasteful in its use of land and/or energy, and is often demolished for more intensive and more energy-efficient housing, despite the resulting loss of embodied energy and urban amenity. A research project was undertaken to study the environmental performance of traditional housing in Hangzhou. The project looks into analyzing and comparing embodied energy and CO2 for seven dwellings. In addition indoor climate data were recorded and collected in the form of hourly temperature and humidity readings for one year in six local houses and in a modern unit as a control for one year. The research results reveal that there is little difference in environmental performance between traditional and conventional modern construction and the value of conservation rather than demolition as a strategic development for the construction industry.

Do actions speak louder than words? An empirical investigation of corporate environmental reputation

In this study, we investigate the extent to which firms’ environmental performance is reflected in perceptions of their environmental reputation and whether environmental disclosure serves to mediate the negative aspects of poorer environmental performance associated with those assessments. We also examine whether differences in environmental performance and environmental disclosure appear to be associated with membership selection to the Dow Jones Sustainability Index (DJSI), a factor we also believe may be associated with perceptions of environmental reputation. Based on a cross-sectional sample of 92 US firms from environmentally sensitive industries, we find that environmental performance measured using Trucost environmental performance scores is negatively related to both reputation scores and membership in the DJSI. We argue this is due to the more extensive disclosure levels of firms that are worse performers and the finding of a significant positive relation between environmental disclosure and both the environmental reputation measures and DJSI membership. Finally, we show that the DJSI designation positively influences perceptions of corporate reputation. Overall, our results suggest that voluntary environmental disclosure appears to mediate the effect of poor environmental performance on environmental reputation. Perhaps more troubling, our results also suggest that membership in the DJSI appears to be driven more by what firms say than what they do. Thus, like voluntary disclosure, the DJSI may actually be hindering improved future corporate environmental performance.

Ecological modernization in selected Malaysian industrial sectors: political modernization and sector variations

The aim of this paper is to understand the differences in environmental performance of palm oil versus textile and apparel production chains in Malaysia by applying ecological modernization theory via substantive quantitative testing. Ecological modernization is tested via four hypotheses, namely policy formulation, technology, regulatory efforts and advocacy of preventive approaches. Two of these prove to be statistically significant for the palm oil production chain whereas none are statistically significant for the textile and apparel production chain. Better environmental performance is correlated with (1) higher involvement of companies in environmental policymaking, and (2) stronger emphasis on preventive approaches by government agencies.

Tractive power in organic farming based on fuel cell technology – Energy balance and environmental load

This study analysed a future hypothetical organic farm self-sufficient in renewable tractor fuel. Biomass from the farm was assumed to be transported to a central fuel production plant and the fuel returned to the farm, where it was utilised in fuel cell powered tractors. The land use, energy balance and environmental impact of five different scenarios were studied. In the first two scenarios, straw was used as raw material for production of hydrogen or methanol via thermochemical gasification. In the third and fourth scenarios, short rotation forest ( Salix) was used as raw material for the same fuels. In the fifth scenario, ley was used as raw material for hydrogen fuel via biogas production. The straw scenarios had the lowest impact in all studied environmental impact categories since the Salix scenarios had higher soil emissions and the ley scenario had comparatively large emissions from the fuel production. The energy balance was also favourable for straw, 16.3 and 19.5 for hydrogen and methanol respectively, compared to Salix 14.2 and 15.6. For ley to hydrogen the energy balance was only 6.1 due to low efficiency in the fuel production. In the Salix scenarios, 1.6% and 2.0% of the land was set aside for raw material production in the hydrogen and methanol scenarios respectively. In the straw scenarios no land needed to be reserved, but straw was collected on 4.3% and 5.3% of the area for hydrogen and methanol respectively. To produce hydrogen from ley, 4% of the land was harvested. The study showed that the difference in environmental performance lay in choice of raw material rather than choice of fuel. Hydrogen is a gas with low volumetric energy density, which requires an adapted infrastructure and tractors equipped with gas tanks. This leads to the conclusion that methanol probably will be the preferred choice if a fuel cell powered farm would be put into practice in the future.

Budget Structure and Pollution Control: A Cross‐country Analysis and Implications for China

AbstractIn the published literature, the differences in environmental performance across countries are typically explained using the Environmental Kuznets Curve. The Environmental Kuznets Curve states that pollution initially increases with economic growth. Once GDP per capita reaches a certain level, the relationship reverses. In the present paper, we provide an alternative hypothesis, where budget structure plays an important role in explaining the variations in pollution across the world: the lower the business‐related taxes as a share of total tax revenue, the higher the property tax in total tax revenue and the higher the ratio of public health expenditure in total expenditure, then the stronger the incentive of pollution control and the lower the pollution level. Our empirical findings reveal that the budget structure does have an important impact on pollution control. The policy implication of this research is that effective control of environmental pollution requires changes in tax structure and expenditure assignment. This research has important policy implications for China's tax system reform and pollution control efforts.