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Effect of Environmental Regulation Stringency on the Pulp and Paper Industry
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Social Sciences.
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Social Sciences.ORCID iD: 0000-0002-5194-4197
2017 (English)In: Sustainability, ISSN 2071-1050, E-ISSN 2071-1050, Vol. 9, no 12, article id 2323Article in journal (Refereed) Published
Abstract [en]

he article investigates whether environmental regulations have affected productivity development and technological change in the European pulp and paper industry. A dynamic panel data approach is selected for analyzing a sample consisting of the pulp and paper industries in eight European countries. Industry total factor productivity for the period 1993–2009 is used as the dependent variable; it is explained by the intensities of environmental regulations for various types of pollutants, as well as by a number of other independent variables. The econometric results indicate that the regulation of nitrogen oxides is associated with productivity improvements with a one-year lag, whereas regulations regarding sulphur dioxide and carbon dioxide have not had any statistically significant impact. In line with the a priori expectations, the price of pulp is connected to a negative effect, while lagged R&D expenditures have had corresponding positive impacts. However, since stationary tests are asymptotic and the data series are quite short, strong conclusions regarding the actual causal effect of environmental policy could not be drawn. The results could therefore not be viewed as a proof of the so-called strong Porter hypothesis postulating that stringent well-designed environmental regulations increase productivity growth compared to a no-policy scenario.

Place, publisher, year, edition, pages
MDPI , 2017. Vol. 9, no 12, article id 2323
Keywords [en]
environmental regulation; sustainability; productivity; cross-country; Europe; pulp and paper industry
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:ltu:diva-66979DOI: 10.3390/su9122323ISI: 000419231500169Scopus ID: 2-s2.0-85038007157OAI: oai:DiVA.org:ltu-66979DiVA, id: diva2:1165379
Note

Validerad;2018;Nivå 2;2017-12-15 (andbra)

Available from: 2017-12-13 Created: 2017-12-13 Last updated: 2018-04-20Bibliographically approved

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Publisher's full textScopushttp://www.mdpi.com/2071-1050/9/12/2323

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