Environment and economic efficiency: an analysis of some polluting Italian industries

Alessandro Manello ()

CERIS Working Paper from CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY

Abstract: this research presents an extension of the directional distance function model to measure performances for firms which produce a large number of pollutants and operate in different industrial sectors. I use this methodology to estimate productivity indexes on a sample of Italian firms that were forced to declare their emissions to the European Pollution Release and Transfer Register in 2007. A proxy for the environmental regulation’s cost is derived and results show a significant impact in term of potential value added lost. Estimations also reveal differences in mean environmental performances among industries; furthermore, the effect of pollution control follows the same path.

Keywords: Directional distance function; Environmental regulation; Polluting industries (search for similar items in EconPapers)
JEL-codes: Q50 Q52 Q56 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2011-06
New Economics Papers: this item is included in nep-edu, nep-eff and nep-reg
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Persistent link: https://EconPapers.repec.org/RePEc:csc:cerisp:201103

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