The impact of environmental performance on firm performance: Short-term costs and long-term benefits?

Eva Horváthová

Ecological Economics, 2012, vol. 84, issue C, 91-97

Abstract: We examine the intertemporal effect of environmental performance on financial performance and propose a method to assess the environmental performance in a fuller manner based on the weighting various pollutants according to their dangerousness to environment. Using our improved measures of environmental performance applied to the firm level data from the Czech Republic, the results suggest that while the effect of environmental performance on financial performance is negative for environmental performance lagged by 1year lag, it becomes positive for 2years lag. As a consequence, our findings indicate that Porter hypothesis holds in the long-run.

Keywords: Environmental performance; Financial performance; Environmental certification; Porter hypothesis (search for similar items in EconPapers)
JEL-codes: C33 Q51 Q57 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (64)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolec:v:84:y:2012:i:c:p:91-97

DOI: 10.1016/j.ecolecon.2012.10.001

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