The Outcome of Pollution Prevention StrategiesEPA 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) RFA Text | Recipients Lists
Research Category: Academic Fellowships , Economics and Decision Sciences , Fellowship - Economics
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?
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.