Adoption of environmental standards and a lack of awareness: evidence from the food and beverage industry in Vietnam

Massimo Filippini and Suchita Srinivasan ()
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Suchita Srinivasan: ETH Zurich

Environmental Economics and Policy Studies, 2022, vol. 24, issue 3, No 1, 307-340

Abstract: Abstract Voluntary approaches to environmental policy can contribute to stemming environmental degradation in developing countries with weak institutions. We evaluate the role of a lack of awareness of a law in explaining the voluntary adoption of environmental certification by small and medium enterprises (SMEs) in the food and beverage industry in Vietnam. We find that firms, where owners or managers were unaware of the law were 38 percentage points less likely to receive environmental certification. Moreover, this effect is larger for firms that exported, had internet access or paid bribes, and it is weaker for household enterprises. Our results suggest that increasing legal awareness can weaken informational constraints for SMEs, where weak institutions and a lack of information often hamper the uptake of environmental policy initiatives.

Keywords: Voluntary environmental standards; Lack of awareness; Small and medium enterprises; Food and beverage industry; Vietnam (search for similar items in EconPapers)
JEL-codes: D22 D83 D91 O13 Q56 Q59 (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s10018-021-00323-9

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