Effects of the reduction of pollution emissions on the economic performance of firms

An empirical analysis focusing on demand and productivity

Kimitaka Nishitani, Shinji Kaneko, Hidemichi Fujii, Satoru Komatsu

Research output: Contribution to journalArticle

41 Citations (Scopus)

Abstract

This paper analyzes whether the reduction of pollution emissions improves a firm's economic performance through the increase in sales to environmentally conscious customers and the cost reductions associated with the improvement in productivity. Because the selection of the control (end-of-pipe) or prevention (cleaner production) approach differently influences the effect through the improvement in productivity, this is also considered. Using panel data for Japanese manufacturing firms over the period 2002-2008, the findings indicate that firms that have reduced their pollution emissions can increase their economic performance through the increase in demand for their products and an improvement in productivity. However, the latter is conditional, and so the prevention approach is preferred.

Original languageEnglish
Pages (from-to)1956-1964
Number of pages9
JournalJournal of Cleaner Production
Volume19
Issue number17-18
DOIs
Publication statusPublished - Nov 1 2011
Externally publishedYes

Fingerprint

empirical analysis
Pollution
Productivity
pollution
productivity
Economics
economics
cleaner production
panel data
Cost reduction
Sales
manufacturing
pipe
Pipe
demand
firm
effect
Economic performance
Empirical analysis

All Science Journal Classification (ASJC) codes

  • Renewable Energy, Sustainability and the Environment
  • Environmental Science(all)
  • Strategy and Management
  • Industrial and Manufacturing Engineering

Cite this

Effects of the reduction of pollution emissions on the economic performance of firms : An empirical analysis focusing on demand and productivity. / Nishitani, Kimitaka; Kaneko, Shinji; Fujii, Hidemichi; Komatsu, Satoru.

In: Journal of Cleaner Production, Vol. 19, No. 17-18, 01.11.2011, p. 1956-1964.

Research output: Contribution to journalArticle

@article{f1f471aa3dbf4ef9a6632687c39bb163,
title = "Effects of the reduction of pollution emissions on the economic performance of firms: An empirical analysis focusing on demand and productivity",
abstract = "This paper analyzes whether the reduction of pollution emissions improves a firm's economic performance through the increase in sales to environmentally conscious customers and the cost reductions associated with the improvement in productivity. Because the selection of the control (end-of-pipe) or prevention (cleaner production) approach differently influences the effect through the improvement in productivity, this is also considered. Using panel data for Japanese manufacturing firms over the period 2002-2008, the findings indicate that firms that have reduced their pollution emissions can increase their economic performance through the increase in demand for their products and an improvement in productivity. However, the latter is conditional, and so the prevention approach is preferred.",
author = "Kimitaka Nishitani and Shinji Kaneko and Hidemichi Fujii and Satoru Komatsu",
year = "2011",
month = "11",
day = "1",
doi = "10.1016/j.jclepro.2011.06.021",
language = "English",
volume = "19",
pages = "1956--1964",
journal = "Journal of Cleaner Production",
issn = "0959-6526",
publisher = "Elsevier Limited",
number = "17-18",

}

TY - JOUR

T1 - Effects of the reduction of pollution emissions on the economic performance of firms

T2 - An empirical analysis focusing on demand and productivity

AU - Nishitani, Kimitaka

AU - Kaneko, Shinji

AU - Fujii, Hidemichi

AU - Komatsu, Satoru

PY - 2011/11/1

Y1 - 2011/11/1

N2 - This paper analyzes whether the reduction of pollution emissions improves a firm's economic performance through the increase in sales to environmentally conscious customers and the cost reductions associated with the improvement in productivity. Because the selection of the control (end-of-pipe) or prevention (cleaner production) approach differently influences the effect through the improvement in productivity, this is also considered. Using panel data for Japanese manufacturing firms over the period 2002-2008, the findings indicate that firms that have reduced their pollution emissions can increase their economic performance through the increase in demand for their products and an improvement in productivity. However, the latter is conditional, and so the prevention approach is preferred.

AB - This paper analyzes whether the reduction of pollution emissions improves a firm's economic performance through the increase in sales to environmentally conscious customers and the cost reductions associated with the improvement in productivity. Because the selection of the control (end-of-pipe) or prevention (cleaner production) approach differently influences the effect through the improvement in productivity, this is also considered. Using panel data for Japanese manufacturing firms over the period 2002-2008, the findings indicate that firms that have reduced their pollution emissions can increase their economic performance through the increase in demand for their products and an improvement in productivity. However, the latter is conditional, and so the prevention approach is preferred.

UR - http://www.scopus.com/inward/record.url?scp=80052444763&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=80052444763&partnerID=8YFLogxK

U2 - 10.1016/j.jclepro.2011.06.021

DO - 10.1016/j.jclepro.2011.06.021

M3 - Article

VL - 19

SP - 1956

EP - 1964

JO - Journal of Cleaner Production

JF - Journal of Cleaner Production

SN - 0959-6526

IS - 17-18

ER -