Corporate environmental and economic performances of Japanese manufacturing firms: Empirical study for sustainable development

Hidemichi Fujii, Kazuyuki Iwata, Shinji Kaneko and Shunsuke Managi

MPRA Paper from University Library of Munich, Germany

Abstract: This study examines the relationships between environmental performance and economic performance in Japanese manufacturing firms. The environmental performance indicators include CO2 emissions and the aggregate toxic risk associated with chemical emissions relative to sales. Return on assets (ROA) is used as an indicator of economic performance. We demonstrate that there is a significant, inverted U-shaped relationship between ROA and environmental performance calculated by aggregated toxic risk. We also find that the environmental performance increases ROA through both returns on sales and capital turnover improvement. However, we observe a significant, positive relationship between financial performance and environmental performance based on CO2 emissions. These findings may provide evidence for the consequences of environmental firm behavior and sustainable development.

Keywords: Corporate environmental management; Environmental efficiency; CO2 emissions; Toxic chemical substances; Japanese manufacturing firm; Sustainable development (search for similar items in EconPapers)
JEL-codes: L2 L25 L6 P28 (search for similar items in EconPapers)
Date: 2012-03-08
New Economics Papers: this item is included in nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (75)

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Related works:
Journal Article: Corporate Environmental and Economic Performance of Japanese Manufacturing Firms: Empirical Study for Sustainable Development (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:39564

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