Abatement investments and green goodwill

Bengt Kriström () and Tommy Lundgren ()

Applied Economics, 2003, vol. 35, issue 18, 1915-1921

Abstract: This paper develops and estimates a dynamic model that links profits to green goodwill. Assuming that abatement investments generate green goodwill, and using data from the Swedish pulp industry, we are able to test the effects of green goodwill on firm level output price and profits. The results suggests that Swedish pulp plant output prices and profits may be positively related to changes in green goodwill. Furthermore, no evidence is found to support the existence of adjustment costs due to abatement investments.

Date: 2003
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DOI: 10.1080/00036840310001628026

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