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Are Subsidiaries More Prone to Pollute? New Evidence from the EPA's Toxics Release Inventory

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  • Don Grant
  • Andrew W. Jones

Abstract

Objective. Some scholars fear that because firms are no longer liable for the hazardous activities of their subsidiaries, the latter are under less corporate pressure to limit their pollution. However, researchers have yet to examine the environmental performance of subsidiaries. This reflects a more general failure on their part to test the effects different organizations have on pollution. Methods. To begin to remedy this situation, we use data from the EPA's Toxics Release Inventory to determine whether subsidiaries emit pollutants at a higher rate than other facilities in the chemical industry. Results. We find that subsidiaries have significantly higher emission rates than other facilities after controlling for several relevant factors. Conclusions. Results suggest how recent research on the structural determinants of environmental degradation might be advanced by focusing on the effects of specific organizational forms.

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  • Don Grant & Andrew W. Jones, 2003. "Are Subsidiaries More Prone to Pollute? New Evidence from the EPA's Toxics Release Inventory," Social Science Quarterly, Southwestern Social Science Association, vol. 84(1), pages 162-173, March.
    • Handle: RePEc:bla:socsci:v:84:y:2003:i:1:p:162-173
    DOI: 10.1111/1540-6237.t01-1-8401010
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    Cited by:

    1. Lori S. Bennear, 2008. "What do we really know? The effect of reporting thresholds on inferences using environmental right‐to‐know data," Regulation & Governance, John Wiley & Sons, vol. 2(3), pages 293-315, September.
    2. Chlond, Bettina & Germeshausen, Robert, 2023. "Impacts of ownership changes on emissions and industrial production: Evidence from Europe," ZEW Discussion Papers 23-016, ZEW - Leibniz Centre for European Economic Research.
    3. Incheol Kim & Hong Wan & Bin Wang & Tina Yang, 2019. "Institutional Investors and Corporate Environmental, Social, and Governance Policies: Evidence from Toxics Release Data," Management Science, INFORMS, vol. 65(10), pages 4901-4926, October.
    4. Clark, Matthew, 2005. "Corporate environmental behavior research: informing environmental policy," Structural Change and Economic Dynamics, Elsevier, vol. 16(3), pages 422-431, September.

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