SHORT-RUN AND LONG-RUN IMPLICATIONS OF ENVIRONMENTAL REGULATION ON FINANCIAL PERFORMANCE.
Opposing theoretical arguments exist regarding the effect of environmental regulation on financial performance. Some studies argue that environmental regulation constrains firms' abilities to exploit revenue-enhancing or cost-reducing opportunities. Other studies, representing the Porter hypothesis,...
| Publicado en: | Contemporary Economic Policy Vol. 29; no. 3; pp. 357 - 374 |
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| Autores principales: | , |
| Formato: | Artículo |
| Publicado: |
Wiley-Blackwell
Jul2011
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| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=61811407&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 61811407 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 10743529 CEY jtl: Contemporary Economic Policy issn: 10743529 maglogo: Y pubinfo: dt: Jul2011 vid: 29 iid: 3 pid: 480 pub: Wiley-Blackwell artinfo: ui: 61811407 10.1111/j.1465-7287.2010.00237.x ppf: 357 ppct: 17 formats: fmt: @attributes: type: P size: 554KB tig: atl: SHORT-RUN AND LONG-RUN IMPLICATIONS OF ENVIRONMENTAL REGULATION ON FINANCIAL PERFORMANCE. aug: au: RASSIER, DYLAN G. EARNHART, DIETRICH affil: Rassier: Research Economist, Bureau of Economic Analysis, U.S. Department of Commerce, BE-40, Washington, DC 20230. Phone 202-606-9892, Fax 202-606-5366, E-mail Earnhart: Professor, Department of Economics, University of Kansas, 435 Snow Hall, Lawrence, KS 66045. Phone 785-864-2866, Fax 785-864-5270, E-mail su: Environmental regulations Government business enterprises Financial performance Business revenue Cost control Hypothesis Chemical industry Industrial wastes sug: subj: Environmental regulations Government business enterprises Cyclic Crude, Intermediate, and Gum and Wood Chemical Manufacturing All Other Basic Organic Chemical Manufacturing Chemical (except agricultural) and allied product merchant wholesalers Other Chemical and Allied Products Merchant Wholesalers Waste treatment and disposal Hazardous Waste Treatment and Disposal Administration of Air and Water Resource and Solid Waste Management Programs Financial performance Business revenue Cost control Hypothesis Chemical industry Industrial wastes ab: Opposing theoretical arguments exist regarding the effect of environmental regulation on financial performance. Some studies argue that environmental regulation constrains firms' abilities to exploit revenue-enhancing or cost-reducing opportunities. Other studies, representing the Porter hypothesis, argue that environmental regulation motivates firms to innovate, which ultimately improves financial performance. Although much of the debate focuses on long-run effects, there are also important short-run effects. This study provides empirical evidence regarding the short-run and long-run effects of Clean Water Act regulation on financial performance. To generate this evidence, we examine the effect of permitted wastewater discharge limits, on the return on sales, using panel data on publicly owned firms in the chemical manufacturing industries. We find that Clean Water Act regulation improves financial performance in both the short run and the long run with a stronger effect in the long run. These results suggest that some net benefits may be realized during a short-run transition to comply with a tighter permitted discharge limit, with additional benefits accruing to the firm in the long run because the firm has more time to innovate. ( JEL K23, L25, L51, L65, Q52) pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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