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Kos Pengurangan Pencemaran dan Pematuhan Alam Sekitar dalam Industri Pembuatan

Author

Listed:
  • Nawawi, Mohd Nasir

    (Pusat Pengajian Pembangunan Sosial dan Ekonomi Universiti Malaysia Terengganu 21030 Kuala Terengganu Malaysia)

  • Ahmat, Nizam

    (Pusat Pengajian Pembangunan Sosial dan Ekonomi Universiti Malaysia Terengganu 21030 Kuala Terengganu Malaysia)

Abstract

Although many empirical studies have examined environmental compliance factors, the relatively limited evidence is available to support managers understand the impact of compliance decisions on pollution abatement expenditure. this paper examines whether the compliance cost differs by the level of environmental compliance. Based on the pollution abatement operation cost (PAOC) model, we estimate the impact of the compliance level, firm size, factory age an standard on compliance costs. The result shows that compliance level and firm size are negatively significant toward PAOC. Firms that do not comply with the environmental regulations bear as much as 3.35 percent higher PAOC than complying firms and almost 2 percent higher for smaller firms. For the regulator, this result is a cost reduction incentive to encourage firms to comply with the rules and increase the level of compliance through law enforcement. However, small firms need assistance to reduce the burden of effluent treatment residues in order to maintain competitiveness without compromising environmental regulations.

Suggested Citation

  • Nawawi, Mohd Nasir & Ahmat, Nizam, 2018. "Kos Pengurangan Pencemaran dan Pematuhan Alam Sekitar dalam Industri Pembuatan," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 52(3), pages 107-114.
    • Handle: RePEc:ukm:jlekon:v:52:y:2018:i:3:p:107-114
    DOI: http://dx.doi.org/10.17576/JEM-2018-5203-8
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