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Voluntary adoption of environmental standards and limited attention: Evidence from the food and beverage industry in Vietnam

Massimo Filippini () and Suchita Srinivasan ()
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Massimo Filippini: Center of Economic Research (CER-ETH), ETH Zurich and Universita della Svizzera italiana, Switzerland
Suchita Srinivasan: Center of Economic Research (CER-ETH), ETH Zurich, Switzerland

No 20/338, CER-ETH Economics working paper series from CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich

Abstract: Voluntary approaches to environmental policy can contribute to stemming environmental degradation in developing countries with weak institutions. We evaluate the role of a behavioral anomaly, limited attention paid by owners or managers, 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 inattentive were 30 percentage points less likely to receive environmental certification. Moreover, this effect is larger for firms that were previously inspected for technical violations, and that exported or bribed, and it is weaker for household enterprises.

Keywords: Voluntary environmental standards; Limited attention; 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)
Pages: 30 pages
Date: 2020-07
New Economics Papers: this item is included in nep-agr, nep-ent, nep-env, nep-sbm, nep-sea and nep-tra
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Persistent link: https://EconPapers.repec.org/RePEc:eth:wpswif:20-338

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