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Does Pollution Prevention Reduce Toxic Releases? A Dynamic Panel Data Model

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  • Donna Ramirez Harrington
  • George Deltas
  • Madhu Khanna

Abstract

We investigate the effectiveness of voluntary pollution prevention activities in reducing toxic releases from facilities that reported to the U.S. Environmental Protection Agency’s Toxics Release Inventory from 1991–2001, using generalized method of moments dynamic panel data models that recognize the potential endogeneity of the pollution prevention adoption decision on toxic releases. We find that pollution prevention adoption had a negative impact on toxic releases. The estimated coefficients suggest that the effect of pollution prevention adoption is substantial, but short-lived, dissipating within 4 to 5 years. However, a continual adoption of pollution prevention techniques leads to lower steady-state releases, with estimated reductions between 35% and 50%.

Suggested Citation

  • Donna Ramirez Harrington & George Deltas & Madhu Khanna, 2014. "Does Pollution Prevention Reduce Toxic Releases? A Dynamic Panel Data Model," Land Economics, University of Wisconsin Press, vol. 90(2), pages 199-221.
    • Handle: RePEc:uwp:landec:v:90:y:2014:ii:1:p:199-221
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    Citations

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    Cited by:

    1. Harrington, Donna Ramirez, 2012. "Two-stage adoption of different types of pollution prevention (P2) activities," Resource and Energy Economics, Elsevier, vol. 34(3), pages 349-373.
    2. George Deltas & Donna Ramirez Harrington & Madhu Khanna, 2021. "The impact of management systems on technical change: the adoption of pollution prevention techniques," Economic Change and Restructuring, Springer, vol. 54(1), pages 171-198, February.
    3. Halkos, George & Polemis, Michael, 2018. "Does market structure trigger efficiency? Evidence for the USA before and after the financial crisis," MPRA Paper 84511, University Library of Munich, Germany.
    4. Keith Brouhle & Brad Graham & Donna Ramirez Harrington, 2023. "Patents and P2: Innovation and Technology Adoption for Environmental Improvements," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(2), pages 439-474, February.
    5. Michael L. Polemis & Thanasis Stengos, 2019. "Does competition prevent industrial pollution? Evidence from a panel threshold model," Business Strategy and the Environment, Wiley Blackwell, vol. 28(1), pages 98-110, January.
    6. Xiang Bi & Connor Mullally, 2021. "Does Peer Adoption Increase the Diffusion of Pollution Prevention Practices?," Land Economics, University of Wisconsin Press, vol. 97(1), pages 224-245.
    7. Xiang Bi, 2017. "“Cleansing the air at the expense of waterways?” Empirical evidence from the toxic releases of coal-fired power plants in the United States," Journal of Regulatory Economics, Springer, vol. 51(1), pages 18-40, February.
    8. Halkos, George & Polemis, Michael, 2016. "Examining the impact of financial development on the environmental Kuznets curve hypothesis," MPRA Paper 75368, University Library of Munich, Germany.
    9. Xiaoyang Li & Yue Maggie Zhou, 2016. "Offshoring Pollution While Offshoring Production," Working Papers 16-09r, Center for Economic Studies, U.S. Census Bureau.
    10. Xiang Bi & Madhu Khanna, 2017. "Inducing pollution prevention adoption: effectiveness of the 33/50 voluntary environmental program," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 60(12), pages 2234-2254, December.
    11. Sangyoul Lee & Xiang Bi, 2019. "Can adoption of pollution prevention techniques reduce pollution substitution?," PLOS ONE, Public Library of Science, vol. 14(11), pages 1-18, November.
    12. Earnhart, Dietrich & Harrington, Donna Ramirez, 2014. "Effect of audits on the extent of compliance with wastewater discharge limits," Journal of Environmental Economics and Management, Elsevier, vol. 68(2), pages 243-261.
    13. George E. Halkos & Michael L. Polemis, 2019. "The impact of market structure on environmental efficiency in the United States: A quantile approach," Business Strategy and the Environment, Wiley Blackwell, vol. 28(1), pages 127-142, January.
    14. Xiaoyang Li & Yue M. Zhou, 2017. "Offshoring Pollution while Offshoring Production?," Strategic Management Journal, Wiley Blackwell, vol. 38(11), pages 2310-2329, November.
    15. George E. Halkos & Michael L. Polemis, 2017. "Does Financial Development Affect Environmental Degradation? Evidence from the OECD Countries," Business Strategy and the Environment, Wiley Blackwell, vol. 26(8), pages 1162-1180, December.

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    More about this item

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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