Fujii, Hidemichi and Managi, Shunsuke (2012): Productive inefficiency analysis and toxic chemical substances in US and Japanese manufacturing sectors. Published in: Asian Business & Management
|
PDF
MPRA_paper_92655.pdf Download (534kB) |
Abstract
Corporate social responsibility is imperative for manufacturing companies to achieve sustainable development. Under a strong environmental information disclosure system, polluting companies are disadvantaged in terms of market competitiveness because they lack an environmentally friendly image. The objective of this study is to analyze the productive inefficiency change in relation to toxic chemical substance emissions for the US and Japan and their corresponding policies. We apply the weighted Russell directional distance model to measure companies’ productive inefficiency which represents their production technology. The data encompass 330 US manufacturing firms observed from 1999 to 2007, and 466 Japanese manufacturing firms observed from 2001 to 2008. This paper focuses on nine high-pollution industries (rubber and plastics; chemicals and allied products; paper and pulp; steel and nonferrous metal; fabricated metal; industrial machinery; electrical products; transportation equipment; precision instruments) categorized into two industry groups: basic materials industries and processing and assembly industries. The results show that the productive inefficiency decreased in all industrial sectors in the US and Japan from 2001 to 2007. In particular, that of the electrical products industry decreased rapidly after 2002 for both countries, possibly because of the enforcement of strict environmental regulations for electrical products exported to European markets.
| Item Type: | MPRA Paper |
|---|---|
| Original Title: | Productive inefficiency analysis and toxic chemical substances in US and Japanese manufacturing sectors |
| Language: | English |
| Keywords: | productive inefficiency; weighted Russell directional distance model; toxic chemical substances; manufacturing sector; United States; Japan |
| Subjects: | L - Industrial Organization > L6 - Industry Studies: Manufacturing L - Industrial Organization > L6 - Industry Studies: Manufacturing > L60 - General O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q53 - Air Pollution ; Water Pollution ; Noise ; Hazardous Waste ; Solid Waste ; Recycling |
| Item ID: | 92655 |
| Depositing User: | Hidemichi Fujii |
| Date Deposited: | 12 Mar 2019 08:43 |
| Last Modified: | 27 Sep 2019 22:11 |
| References: | Akao, K. and Managi, S. (2007) The feasibility and optimality of sustainable growth under materials balance. Journal of Economic Dynamics and Control. 31(11): 3778–3790. Barros, C.P., Managi, S. and Matousek, R. (2012) The technical efficiency of the Japanese banks: Non-radial directional performance measurement with undesirable output. Omega, 40: 1-8. Bunge, J., Cohen-Rosenthal, E. and Ruiz-Quintanilla, A. (1996) Employee participation in pollution reduction: Preliminary analysis of the Toxics Release Inventory. Journal of Cleaner Production 4: 9–16. Chen, P.C., Yu, M., Managi, S. and Chang, C. (2011) Non-radial directional performance measurement with undesirable outputs. Sendai, Japan: Tohoku University. Working Paper. Claver, E., López, M.D., Molina, J.F., and Tarí, J.J. (2007) Environmental management and firm performance: A case study. Journal of Environmental Management 84(4): 606–619. Färe, R., Grosskopf, S. and Pasurka, C.A. Jr. (2001) Accounting for air pollution emission in measures of state manufacturing productivity growth. Journal of Regional Science 41(3): 381–409. Fujii, H., Kaneko, S. and Managi, S. (2010) Changes in environmentally sensitive productivity and technological modernization in China’s iron and steel industry in the 1990s. Environment and Development Economics 15: 485–504. Fujii, H., Managi, S. and Kawahara, H. (2011) The pollution release and transfer register system in the US and Japan: an analysis of productivity. Journal of Cleaner Production, in press. doi:10.1016/j.jclepro.2011.01.010. Jaffe, A.B., Newell, R.G. and Stavins, R.N. (2005) A tale of two market failures: Technology and environmental policy. Ecological Economics 54(2–3): 164–174. Kammerer, D. (2009) The effects of customer benefit and regulation on environmental product innovation: Empirical evidence from appliance manufacturers in Germany. Ecological Economics 68(8–9): 2285–2295. Khanna, M., Quimio, W.R.H. and Bojilova, D. (1998) Toxics release information: A policy tool for environmental protection. Journal of Environmental Economics and Management 36: 243–266. Koehler, D.A. and Spengler, J.D. (2007) The toxic release inventory: Fact or fiction? A case study of the primary aluminum industry. Journal of Environmental Management 85: 296–307. Kolominskas, C. and Sullivan, R. (2004) Improving cleaner production through pollutant release and transfer register reporting processes. Journal of Cleaner Production 12: 713–724. Kwon, H.M. (2006) The effectiveness of process safety management (PSM) regulation for chemical industry in Korea. Journal of Loss Prevention in the Process Industries 19: 13–16. Lanjouw, J.O. and Mody, A. (1996) Innovation and the international diffusion of environmentally responsive technology. Research Policy 25(4): 549–571. Managi, S., Opaluch, J.J., Jin, D. and Grigalunas, T.A. (2005) Environmental regulations and technological change in the offshore oil and gas industry. Land Economics 81(2): 303–319. Oltra, V. and Saint-Jean, M. (2009) Sectoral systems of environmental innovation: An application to the French automotive industry. Technological Forecasting and Social Change 76(4): 567–583. Pethig, R. (2006) Non-linear production, abatement, pollution and materials balance reconsidered. Journal of Environmental Economics and Management 51(2): 185–204. World Commission on Environment and Development (1987), Our Common Future: The Brundland Report on Environmental and Development. Oxford University Press. Vidovic, M. and Khanna, N. (2007) Can voluntary pollution prevention programs fulfill their promises? Further evidence from the EPA’s 33/50 Program. Journal of Environmental Economics and Management 53(2): 180–195. Zatz, M. and Harbour, S. (1999) The United States Environmental Protection Agency’s 33/50 Program: The anatomy of a successful voluntary pollution reduction program. Journal of Cleaner Production 7(1): 17–26. |
| URI: | https://mpra.ub.uni-muenchen.de/id/eprint/92655 |
All papers reproduced by permission. Reproduction and distribution subject to the approval of the copyright owners.
| View Item |