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Motivations for Proactive Environmental Management

Author

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  • Madhu Khanna

    (Department of Agricultural and Consumer Economics, University of Illinois, 1301 W, Gregory Drive Urbana, IL 61801, USA)

  • Cameron Speir

    (Cameron Speir, NOAA Fisheries, Southwest Fisheries Science Center, Fisheries Ecology Division, 110 Shaffer Road, Santa Cruz, CA 95060, USA)

Abstract

This paper examines the extent to which there are differential incentives that motivate the adoption of environmental management practices (EMPs) and pollution prevention (P2) methods. We analyze the role of internal drivers such as managerial attitudes towards the environment and external pressures using both observed characteristics of facilities and perceived pressures. We estimate a structural equation model using survey data from facilities in Oregon that involves simultaneous estimation of the latent dependent and explanatory variables and the two regression equations explaining adoption behavior of EMPs and P2. We find that perceived regulatory pressures and managerial attitudes have a statistically significant impact on the adoption of both EMPs and P2 practices, while market pressures were significant in influencing the adoption of EMPs but not P2 methods. Furthermore; we find that both external regulatory pressures and internal managerial attitudes had a larger impact in motivating adoption by facilities that did not view environmental issues as being a significant concern as compared to facilities that did.

Suggested Citation

  • Madhu Khanna & Cameron Speir, 2013. "Motivations for Proactive Environmental Management," Sustainability, MDPI, vol. 5(6), pages 1-29, June.
    • Handle: RePEc:gam:jsusta:v:5:y:2013:i:6:p:2664-2692:d:26534
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    References listed on IDEAS

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    3. Hongjun Dai & Tao Sun & Kun Zhang & Wen Guo, 2015. "Research on Rural Nonpoint Source Pollution in the Process of Urban-Rural Integration in the Economically-Developed Area in China Based on the Improved STIRPAT Model," Sustainability, MDPI, vol. 7(1), pages 1-12, January.
    4. Bansal, Sangeeta & Khanna, Madhu & Sydlowski, Joseph, 2021. "Incentives for corporate social responsibility in India: Mandate, peer pressure and crowding-out effects," Journal of Environmental Economics and Management, Elsevier, vol. 105(C).
    5. Dimitiradis, Efstathios D. & Kamenidou, Irene & Mamalis, Spyridon & Bara, Evangelia - Zoi, 2018. "The mediating effect of environmental policy on the relationship between satisfaction and loyalty in the hotel industry," MPRA Paper 99409, University Library of Munich, Germany.
    6. Llorenç Bagur-Femenias & Dolors Celma & Josep Patau, 2016. "The Adoption of Environmental Practices in Small Hotels. Voluntary or Mandatory? An Empirical Approach," Sustainability, MDPI, vol. 8(7), pages 1-14, July.
    7. Massimo Filippini & Suchita Srinivasan, 2022. "Adoption of environmental standards and a lack of awareness: evidence from the food and beverage industry in Vietnam," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 24(3), pages 307-340, July.
    8. Yongrok Choi & Jingwen Jin, 2015. "Is the Web Marketing Mix Sustainable in China? The Mediation Effect of Dynamic Trust," Sustainability, MDPI, vol. 7(10), pages 1-21, October.
    9. Bansal, Sangeeta & Khanna, Madhu, 2017. "Corporate Social Responsibility Act in India: An Analysis of Firm Compliance," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258334, Agricultural and Applied Economics Association.
    10. Massimo Filippini & Suchita Srinivasan, 2020. "Voluntary adoption of environmental standards and limited attention: Evidence from the food and beverage industry in Vietnam," CER-ETH Economics working paper series 20/338, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    11. Sarangi, Gopal Krishna, 2021. "Resurgence of ESG Investments in India: Toward a Sustainable Economy," ADBI Working Papers 1284, Asian Development Bank Institute.

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