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Extramural Research

Grantee Research Project Results

NCER Grantee Research Project Results

The Outcome of Pollution Prevention Strategies

EPA Grant Number: U915023
Title: The Outcome of Pollution Prevention Strategies
Investigators: Damon, Lisa A.
Institution: University of Illinois at Urbana-Champaign
EPA Project Officer: Jones, Brandon
Project Period: January 1, 1996 through January 1, 1999
Project Amount: $102,000
RFA: STAR Graduate Fellowships (1996)
Research Category: Academic Fellowships , Economics and Decision Sciences , Fellowship - Economics

Description:

Objective:

The objective purpose of this study research project is to address three research questions: (1) What impact does pollution prevention have on firms' environmental performance? (2) How does the regulatory regime influence the adoption of pollution prevention? (3) Does pollution prevention provide firms with a competitive advantage?

Approach:

This study research project takes uses a systematic approach to examine the issue of pollution prevention. The research questions are addressed with econometric modeling of 123 firms in the chemical industry from 1991-1993. Financial data for these firms are from the Compustat database. The primary source of environmental data is the Toxics Release Inventory (TRI). The TRI also is also the source for firms' pollution prevention activities. A two-stage model is used to explain the firm's adoption of P2 and its subsequent environmental and financial performance. This approach controls for endogeneity and self-selection bias. Factors such as pressure from consumers and regulators will be used to explain adoption of P2. A framework to explain the motives for P2 will be developed from a strategic management perspective and from economic theory.

Supplemental Keywords:

fellowship, pollution, pollution prevention, pollution prevention strategies, environmental and financial performance, economics., RFA, ENVIRONMENTAL PROTECTION AGENCY, Economic, Social, & Behavioral Science Research Program, Scientific Discipline, Sustainable Industry/Business, Reinvention, Civil/Environmental Engineering, Corporate Performance, decision-making, Urban and Regional Planning, Social Science, Economics & Decision Making, policy analysis, policy making, profitability, social impact analysis, decision analysis, environmental decision making, incentives, decision making, cost benefit, environmental policy, uncertainty, institutional factors, environmental behavior

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The perspectives, information and conclusions conveyed in research project abstracts, progress reports, final reports, journal abstracts and journal publications convey the viewpoints of the principal investigator and may not represent the views and policies of ORD and EPA. Conclusions drawn by the principal investigators have not been reviewed by the Agency.

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