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Corporate environmental management in transition economies: The case of Central and Eastern Europe

Jorge García, Randall Bluffstone and Thomas Sterner

No 411, Working Papers in Economics from University of Gothenburg, Department of Economics

Abstract: We use firm-level data to study the adoption of Environmental Management Practices (EMPs) in the most polluting industrial sectors in Bulgaria, Hungary, Lithuania, Poland, Romania, and Slovakia during the 1990 – 1998 period when these countries were in a transition away from a centrally planned economy. Despite the stickiness of a long established managerial regime and the declines in industrial output during this period, around 42% of the firms in our sample adopted Environmental Plans (EPs) and/or established Environmental Departments (EDs). The analysis reveals that enforcement and public disclosure of the environmental performance of firms are the most important forces behind the implementation of both of these EMPs. Also, but to a lesser extent, export oriented firms and larger firms are prone to adoption. Finally, we use a methodology that clarifies some of the links between different EMPs not addressed in earlier studies. Notably, once a firm has decided to adopt (or not adopt) an ED, additional increases in enforcement do not to lead to EP implementation.

Keywords: Environmental Management; Bivariate Analysis; Central and Eastern Europe (search for similar items in EconPapers)
JEL-codes: C25 Q53 Q58 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2009-12-04
New Economics Papers: this item is included in nep-env, nep-res and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Published as Garcia, Jorge, Randy Bluffstone and Thomas Sterner, 'Corporate environmental management in transition economies: The case of Central and Eastern Europe' in Finance a uver - Czech Journal of Economics and Finance, 2009, pages 410-425.

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