Analyzing the Environmental Performance of the Brazilian Industrial Sector

Ronaldo Motta

No 137, Discussion Papers from Instituto de Pesquisa Econômica Aplicada - IPEA

Abstract: This study will analyze the determinants of environmental performance in the Brazilian industrial sector. It uses a database conducted by the Brazilian National Confederation of Industries inquiring about questions on environmental management over 325 medium and large firms referred to the year 1997. We have been able to test a proxy of environmental performance, such as a weighted average number of environmental control practices. Consistent with results in the main literature, our study confirms that, apart from some expected characteristics of the firm, as size, sector and foreign ties, demands from communities and market incentives are also very influential determinants. Cost savings on inputs and subsidized credit are found equally important. Based on that, we recommend flexible instruments on pollution control that capture the firm’s differentials in characteristics and compliance levels as well as dissemination of information on environmental control and related cost saving opportunities. Este estudo analisa os determinantes do desempenho ambiental na indústria brasileira. Para tal, usa a base de dados da Pesquisa sobre Gestão Ambiental da CNI, que cobriu 325 médias e grandes empresas para o ano de 1997. Usamos um indicador de desempenho composto de uma soma ponderada das práticas de controle ambiental adotadas para cada firma. Consoante com a literatura, os resultados também confirmam que as características da firma, tais como tamanho, natureza do capital, grau de exportação e pressão da comunidade são outros fatores influenciando o desempenho ambiental. Acima de tudo, observou-se que práticas indutoras de redução de custos e subsídios são igualmente importantes. Com base nesses resultados sugerimos a adoção de instrumentos regulatórios mais flexíveis que capturem as diferenças entre as firmas como também outros que acelerem a disseminação de práticas de gestão ambiental que sejam redutoras de custos.

Pages: 29 pages
Date: 2015-01
New Economics Papers: this item is included in nep-env
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