Voluntary Environmental Programs Research Articles

When Are Voluntary Environmental Programs More Effective? A Meta-Analysis of the Role of Program Governance Quality

We meta-analyze 103 studies of 23 voluntary environmental programs (VEPs) to assess how their governance quality, or the rigor of their internal institutional mechanisms, drives their ability to improve their participants corporate environmental and financial performance. The goal of VEPs is to incentivize firms to reduce firms’ environmental impacts by bolstering their reputations and helping them learn practices that improve their financial performance. Research on VEP effectiveness, however, is inconclusive, in part, because most studies sampled individual programs, and were unable to analyze how difference in program characteristics drive their effectiveness. We draw on institutional theory to argue that VEP governance quality determines whether they improve participants’ environmental performance, and the natural resource-based view to argue that they improve their financial performance. Results confirm our predictions, and in doing so, help to establish a business case for VEPs with high-quality governance.

A place‐based approach to understanding firms' voluntary environmental engagement: The role of regional pressures in the case of Korea

AbstractEnvironmental management literature has extensively explored why the regulated community, particularly private firms, join voluntary environmental programs (VEPs) in which participants promise to regulate “beyond compliance.” However, the notion of locus has been rarely considered a key determinant of a firm's VEP participation. This study examines how regional pressures encourage firms' VEP participation. Drawing on a dataset of over 1000 industrial facilities related to five government sponsored VEPs in Korea, it investigates how three types of regional pressures—regulators, industrial peers, and community members—affect firms' decision to join VEPs. The major findings are that firms located in the same region as their conglomerate peers, as well as firms located in a place where a large amount of odor pollutant is released, are more likely to participate in VEPs. These results demonstrate the impact of social attributes derived from the geographic location of firms on facilities' VEP engagement.

Does the Perceived Effectiveness of Voluntary Conservation Programs Affect Household Adoption of Sustainable Landscaping Practices?

State and local governments have implemented voluntary and mandatory programs to conserve and protect natural resources in and around urban developments. Even though the long-term environmental benefits are apparent, convincing homeowners to adopt sustainable landscapes with less water and chemical use is challenging. An important consideration from the successful policy implementation point of view is that homeowners have different environmental attitudes, which can be the determining factor that influences their adoption intentions of sustainable landscaping practices. This study assesses whether homeowners’ environmental attitude is a statistically significant predictor of sustainable landscape adoption intention. Moreover, homeowners’ perception of the effectiveness of the voluntary environmental programs may be influenced by their environmental attitudes and impose mediating effects on sustainable landscape adoption intentions. We also examine whether homeowners’ perceived effectiveness of voluntary environmental programs has a mediating effect on the adoption decision. The Value-Belief-Norm hierarchical model framework is utilized to examine both effects. The results revealed that homeowners’ pro-environmental attitudes influence their perceived effectiveness of voluntary programs and their sustainable landscape adoption intentions. The combined influence accounts for 13.6% of homeowners’ adoption intention. Homeowners’ personal norms also affect their perceived effectiveness of voluntary programs (9% variance explained), and the mediating effect of the perceived effectiveness of voluntary programs has an amplifying effect and positively influences the adoption intention. The implications for policymakers in the realm of landscape conservation programs are discussed.

Local factors driving the adoption of municipal voluntary environmental programs: the case of Sweden’s eco-municipalities

In the past few decades voluntary environmental programs (VEPs) have gained traction as a tool to promote environmental performance beyond regulatory requirements. However, such programs have been largely studied in the context of the private sector with comparatively less consideration given to the possibility that local governments can also join such programs to improve both their reputation and environmental performance. We consider Sweden’s Eco-municipality association as an instance of a public sector VEP and find that, even after accounting for spatial dependence; environmental consciousness, municipality type, the level of education, industry structure and environmental vulnerability (as proxied by proximity to the coast) are significant determinants of the municipality’s decision to participate in the program.

Voluntary commitments made by the world’s largest companies focus on recycling and packaging over other actions to address the plastics crisis

Plastic pollution has caused significant environmental and health challenges. Corporations that contribute to the make, use, and distribution of plastics can play a vital role in addressing global plastic pollution and many are committing to voluntary pledges. However, the extent to which corporation voluntary commitments are helping solve the problem remains underexplored. Here we develop a novel typology to characterize voluntary commitments to reduce plastic pollution made between 2015-2020 by 974 companies including the top 300 of the Fortune Global. We find that 72% of these companies have made commitments to reduce plastic pollution. About 67% of companies participating in voluntary environmental programs (VEPs) and 17% of non-VEPs participants made measurable and timebound commitments. However, rather than tackle virgin plastics, most companies target general plastics and frequently emphasize end-of-life controls with a primary focus on recycling. Growing commitments on plastic pollution are made by large and important companies, but significantly more efforts beyond plastic recycling are required to effectively address plastic pollution challenges.

ISO 14001 certification and industrial decarbonization: An empirical study

Voluntary environmental programs have proven to be a viable tool of pollution abatement, supplementing the command-and-control approach and market-based policies such as emissions trading and taxes. These voluntary initiatives aim to achieve pollution reduction through several channels, including procedural changes, raw material changes, product and packaging redesign, and innovation in pollution control technologies. The ISO 14001 standard is such a voluntary program; first introduced in 1996 by the International Organization for Standardization (ISO), it has steadily grown since and has been widely adopted by organizations around the world. In this paper, we empirically study the effects of the ISO 14001 standard on carbon emissions using a panel dataset of Korean manufacturing firms. As the largest contributor to the warming of the earth's atmosphere, carbon emissions are the focus of national and international efforts to curb climate change. The Korean manufacturing industry is responsible for about 40% of greenhouse gases in the country and has experienced rapid growth in ISO 14001 certified facilities. Our econometric results indicate that ISO 14001 certification spurs a significant reduction in carbon emissions among certified firms, after accounting for its potential endogeneity with an instrumental variable strategy. The empirical results suggest that wider ISO 14001 certification among carbon-intensive industries can be a credible pathway to help achieve the Korean government's goal of cutting domestic carbon emissions by 37% by 2030.

Do voluntary environmental programs matter? Evidence from the EPA SmartWay program

AbstractThere is mixed evidence on the effectiveness of voluntary environmental programs. We evaluate a voluntary program aimed at reducing transportation emissions, that is, the U.S. EPA SmartWay Program. We construct a novel database of the physical assets used by firms before and after they joined SmartWay and compare changes in the age of their assets with that of firms that did not join SmartWay. Our results show that firms that participated in SmartWay operate substantially newer (i.e., cleaner) trucks compared with non‐SmartWay participants, indicating that SmartWay participation is a credible signal of a firm's reduced emissions footprint emanating from truck operations. After the start of SmartWay, firms that joined invested in newer trucks relative to firms that did not, with about a year reduction in average truck age several years after the program began. SmartWay had a larger effect on firms that own their trucks compared with firms that outsource ownership, and sustained participation increased the program's effectiveness. We estimate that the SmartWay Program has reduced commercial transportation emissions from operations by 25.2 million metric tons of CO2 by increasing the incentive to invest in newer, cleaner trucks. Our study provides insight into factors that make voluntary environmental programs effective.

The impact of heterogeneous environmental regulations on regional spatial differences in net carbon emissions.

Effected by spatial difference and types of environmental regulation, enhanced environmental regulation does not necessarily lead to reduce net carbon emissions (NCE). Based on panel data of 30 province-level administrative regions in China from 2003 to 2018, this paper analyzed the impact of heterogeneous environmental regulations on NCE using geographically weighted regression (GWR). The results showed that (1) the total NCE of each province in China presented an increasing trend followed by fluctuation, with obvious spatial aggregation characteristics. (2) The intensity of four environmental regulations, command-and-control (CAC), market-incentive (MI), public-participation (PP), and voluntary environmental program of firm (VEPF) tended to increase slightly over the study period with decreasing spatial heterogeneity. (3) CAC environmental regulations had a "green paradox" effect on NCE, meaning an improving CAC environmental regulation would surprisingly increase its negative effects and contribute to NCE growth. The effect of MI environmental regulation on NCE shifted from overall promotion to partly promotion and even suppression. PP and VEPF environmental regulation would reduce NCE. The suppressive effect of PP environmental regulation grew over time, while VEPF did not. Finally, based on the research conclusion, some policy suggestion are proposed for differentiated management, diverse system of governance, and collaborative governance.

Encouraging voluntary government action via a solar-friendly designation program to promote solar energy in the United States

SignificanceDue to market and system failures, policies and programs at the local level are needed to accelerate the renewable energy transition. A voluntary environmental program (VEP), such as SolSmart, can encourage local governments to adopt solar-friendly best practices. Unlike previous research, this study uses a national sample, more recent data, and a matched control group for difference-in-differences estimation to quantify the causal impact of a VEP in the public, rather than private, sector. We offer empirical evidence that SolSmart increased installed solar capacity and, with less statistical significance, the number of solar installations. The results inform the design of sustainability-focused VEPs and future research to understand the causal pathways between local governments' voluntary actions and solar market development.

Bunching with the Stars: How Firms Respond to Environmental Certification

Voluntary environmental certification programs have been a popular tool used by governments, industry groups, and nonprofit organizations alike. A central question in the design of such programs is who should pay for them. In a context where firms respond strategically to a certification, the answer to this question is a priori ambiguous and, ultimately, empirical. This paper provides important insights on this question using ENERGY STAR, a voluntary certification program for energy-efficient products, as a case study. I show that firms are highly strategic with respect to this certification and extract consumer surplus associated with certified products via three mechanisms. They offer products that bunch at the certification requirement, differentiate certified products in the energy and nonenergy dimensions, and charge a price premium on certified products. I use these findings to motivate a structural econometric model with firms’ strategic behaviors with respect to product line and pricing decisions and to investigate the incidence of a certification licensing fee to fund the certification program. This paper was accepted by Juanjuan Zhang, marketing.

Case Study on Developing a Comprehensive Voluntary Environmental Performance and Process Standard for Alpine Resorts Using Four Business Management Principles

In 2018, Jackson Hole Mountain Resort (JHMR) in Teton Village, WY, USA, discontinued its International Standards Organization 14001 environmental management system. JHMR needed a replacement voluntary environmental program (VEP) that would empower resort employees to directly mitigate climate change, reduce waste and pollution, minimize water use, and restore biodiversity, along with improving building, education, and purchasing. I developed the Model for Alpine Resort Sustainability (MARS) based on 2 research objectives of improving existing industry-specific VEPs and empowering employees to directly mitigate resort environmental impacts through their work. MARS involves 4 business management principles: (1) use ski industry-specific criteria to drive accountability comprehensively across 25 resort departments; (2) quantify greenhouse gas emissions, using both absolute and intensity or normalized bases, and apply quantification to solid waste production and water consumption; (3) employ modern management techniques and software to focus on action over documentation; and (4) strategically align with the core business objective of alpine resorts to provide profitable outdoor recreation by decreasing costs and increasing revenues. MARS provides the most comprehensive, research-based accounting to date of alpine resort environmental impacts and mitigation indicators. MARS could be applied to larger resorts receptive to change.

Evolving Perspectives of Stewardship in the Seafood Industry

Humanity has never benefited more from the ocean as a source of food, livelihoods, and well-being, yet on a global scale this has been accompanied by trajectories of degradation and persistent inequity. Awareness of this has spurred policymakers to develop an expanding network of ocean governance instruments, catalyzed civil society pressure on the public and private sector, and motivated engagement by the general public as consumers and constituents. Among local communities, diverse examples of stewardship have rested on the foundation of care, knowledge and agency. But does an analog for stewardship exist in the context of globally active multinational corporations? Here, we consider the seafood industry and its efforts to navigate this new reality through private governance. We examine paradigmatic events in the history of the sustainable seafood movement, from seafood boycotts in the 1970s through to the emergence of certification measures, benchmarks, and diverse voluntary environmental programs. We note four dimensions of stewardship in which efforts by actors within the seafood industry have aligned with theoretical concepts of stewardship, which we describe as (1) moving beyond compliance, (2) taking a systems perspective, (3) living with uncertainty, and (4) understanding humans as embedded elements of the biosphere. In conclusion, we identify emerging stewardship challenges for the seafood industry and suggest the urgent need to embrace a broader notion of ocean stewardship that extends beyond seafood.

Join In . . . and Drop Out? Firm Adoption of and Disengagement From Voluntary Environmental Programs

Voluntary environmental programs (VEPs) offer opportunities for companies and stakeholders to improve environmental outcomes valued by society in the absence of regulatory mandates. Research has addressed numerous antecedents for firm adoption of VEPs, enhancing knowledge of how stakeholders and firms engage on substantive issues of public importance. However, program adoption is dynamic, and stagnant participation rates may threaten program longevity when firms do not realize expected benefits. Prior literature has not sufficiently addressed the factors that compel firms to drop out. In this study I articulate three consequential drivers of firm commitment to VEPs—transparency, effort, and achievement—and empirically estimate their effects on firm disengagement from one such prominent program: CDP (formerly known as Carbon Disclosure Project). Findings indicate that firm transparency and effort represent powerful commitment mechanisms driving continued program participation. This study contributes to theory over multiple literatures related to VEP participation and offers practical guidance for both VEPs and firms.

Join In... and Drop Out? Firm Adoption of and Disengagement from Voluntary Environmental Programs

Voluntary environmental programs (VEPs) offer opportunities for companies and stakeholders to improve environmental outcomes valued by society in the absence of regulatory mandates. Research has addressed numerous antecedents for firm adoption of VEPs, enhancing knowledge of how stakeholders and firms engage on substantive issues of public importance. However, program adoption is dynamic, and stagnant participation rates may threaten program longevity when firms do not realize expected benefits. Prior literature has not sufficiently addressed the factors that compel firms to drop out. In this study I articulate three consequential drivers of firm commitment to VEPs --- transparency, effort, and achievement --- and empirically estimate their effects on firm disengagement from one such prominent program: CDP. Findings indicate that firm transparency and effort represent powerful commitment mechanisms driving continued program participation. This study contributes to theory over multiple literatures related to VEP participation and offers practical guidance for both VEPs and firms.

Local Decision-makers' Perspectives on Roadside Revegetation and Management in Iowa, USA.

Environmental practitioners must understand those they collaborate with to implement programs that are both socially and ecologically effective. Practitioners who understand decision-makers' perspectives are better able to collaborate to lower political, financial, and cultural obstacles. In this study, we surveyed decision-makers involved with a voluntary environmental program in Iowa, USA. Iowa counties can choose to manage their roadside vegetation using an ecological approach, called integrated roadside vegetation management. Key decision-makers who decide whether a county has a roadside program are the county board of supervisors and the county conservation board. We used a mixed-mode design to survey the conservation board directors and chairs of the board of supervisors in each county. Our main goals were to understand the decision-makers' perceived benefits and barriers to having a roadside program in their counties, as well as the key factors influencing their decisions about roadside vegetation management. Safety, maintenance cost savings, and erosion control were the main factors that influenced decision-making, while pollinators and other wildlife received the least consideration. However, decision-makers in counties with a roadside vegetation manager were more influenced by pollinators and other wildlife compared to their counterparts in counties without a roadside vegetation manager. The main barriers to having a program include a lack of resources or other concerns being a higher priority. Emphasizing safety, cost savings, and erosion control benefits of roadside programs, and identifying ways to lower startup costs may increase buy-in with county decision-makers.

Why Do Firms Participate in Voluntary Environmental Programs? A Meta-Analysis of the Role of Institutions, Resources, and Program Stringency

We meta-analyze research on why firms join voluntary environmental programs (VEPs) to assess the impact of program stringency, or the extent to which they have rigorous, enforceable standards on these decisions. Stringency creates trade-offs for firms by affecting programs’ effectiveness, legitimacy, and adoption costs. Most research considers singular programs and lacks cross program variation needed to analyze program stringency’s impact. Our meta-analysis addresses this by sampling 127 studies and 23 VEPs. We begin by identifying common institutional and resource-based drivers of participation in the literature, and then analyze how program stringency moderates their impacts. Our results suggest that strictly governed VEPs encourage participation among highly visible and profitable firms, and discourage it when informal institutional pressures are higher, and firms have prior experience with other VEPs or quality management standards. We demonstrate that VEP stringency has nuanced effects on firm participation based on the institutional and resource-based factors facing them.

Societal awareness of environmental certifications in Costa Rica

The effectiveness of voluntary environmental programs and certifications to render social and private benefits depends on how aware consumers are, so that they can consider such initiatives when making their decisions. Consumers’ awareness has been mostly addressed in developed countries, although the benefits of companies’ environmental actions also take place in developing countries. This study is conducted in a developing country, such as Costa Rica. Using a large sample (n = 1191), consumers’ awareness of environmental certifications is studied at a general level (being able to name some environmental certification or program) and at a specific level (ability to name certified firms). The results show that consumers who are younger, with higher household income, with a university or technical degree and those participating in environmental or community groups are more likely to be aware of environmental certifications on both levels. Moreover, aware consumers tend to be more willing to pay for a certified coffee or a coffee produced by a certified company.

Drivers and Barriers to Participation in Voluntary Environmental Programs: A Meta-Analysis

We meta-analyze research on the antecedents of firm participation in voluntary environmental programs (VEP) to better understand why firms to join these environmental self-regulations initiatives. Most existing studies consider singular programs and their idiosyncrasies, and arbitrary sets of institutional or resource-based motivators of business participation. Further, they overlook factors that discourage participation. Our meta-analysis of 119 studies and 21 VEPs addresses these gaps by testing a comprehensive model of institutional and resource-based motivators of VEP participation, and VEP governance characteristics that discourage participation by increasing firms’ adoption and compliance costs. Our results confirm that VEPs tend to attract firms when environmental institutional pressures are higher, and when firms have complementary resources to VEP participation. Further, they suggest that strictly governed VEPs discourage participation when normative and cultural-cognitive institutional pressures are higher, and when firms have prior experience with VEPs. Our study helps answer the question: “Why do firms join VEPs?”

Differential effects of voluntary environmental programs and mandatory regulations on corporate green innovation

There is a long-lasting debate on whether environmental regulation fosters or hinders corporate green innovation. To address this debate, this study differentiates two types of regulations: mandatory environmental regulations (MERs) and voluntary environmental programs (VEPs), and explores whether MERs and VEPs, separately and jointly, affects corporate green innovation. This study also investigates the moderating effect of organizational slack on the focal relationship. With the data of top 100 listed companies in China, the results show that MERs significantly negatively affect green innovation, while VEPs significantly positively influence green innovation, and VEPs mitigate the negative impact of MERs on green innovation. Moreover, organizational slack strengthens the positive relationship between VEPs and green innovation, while no significant moderating effect on the MER–green innovation relationship. These findings provide guidance for corporate green innovation under mandatory regulations and voluntary programs.

In the LEED: Racing to the Top in Environmental Self‐Regulation

AbstractDoes voluntary participation in eco‐certification become more substantive over time, or less? Although past research on voluntary programs suggests that later participants are more likely to greenwash by only symbolically adopting voluntary standards, theories of regulatory competition suggest a possible “race to the top.” We argue that participation in voluntary programs can facilitate competition that enables a race, and we advance a theory of self‐regulatory competition to explain dynamics of participation in voluntary environmental programs. Under this perspective, environmental self‐regulation may facilitate a race to the top, despite possibilities for purely symbolic adoption. Analyzing data from a voluntary green building certification program in the United States, we introduce a methodology to distinguish propensities for symbolic certification from more substantive environmental performance. Data demonstrate that later adopters invest additional resources to attain higher certification, becoming greener and suggesting a race to the top in a voluntary greenbuilding certification program.