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Toxic release inventories and green consumerism: empirical evidence from Canada

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  • Werner Antweiler
  • Kathryn Harrison

Abstract

. Do firms abate pollution in response to actual or anticipated green consumerism? Lacking direct observational data on the extent of green consumerism, we construct an indirect method to elicit its effect on pollution abatement. If environmentally motivated consumers target companies rather than particular facilities of a multi‐product firm, green consumerism can be identified through intra‐firm inter‐plant spillover effects in pollution abatement. We test the prediction that ‘environmentally‐leveraged’ firms with consumer market exposure experience larger emission reductions. We use 1993–99 panel data from Canada's National Pollutant Release Inventory (NPRI), with pollutants adjusted for toxicity. Our empirical results find statistically significant evidence of green consumerism, but its economic magnitude is very small. JEL Classification: Q2, R3 Inventaires des émanations toxiques et consumérisme vert : résultats pour le Canada. Est‐ce que les entreprises réduisent la pollution en réponse au consumérisme vert – présent ou anticipé? Comme on n’a pas de façon de le savoir directement, on élabore une méthode indirecte de mesurer son impact sur l réduction de la pollution. Si des consommateurs intéressés à l’environnement ciblent certaines sociétés plutôt que des installations particulières d’une entreprise multi‐produit, le consumérisme vert a un impact détectable via des effets de retombées des politiques de réduction de pollution intra‐firme entre les installations. On met au test l’hypothèse que les entreprises qui sont exposées à des pressions sur le marché effectuent des réductions de pollution plus importantes. Utilisant des données de l’inventaire national des rejets de polluants du Canada pour 1993–99, on trouve que l’effet du consumérisme vert est statistiquement significatif mais économiquement très faible.

Suggested Citation

  • Werner Antweiler & Kathryn Harrison, 2003. "Toxic release inventories and green consumerism: empirical evidence from Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 36(2), pages 495-520, May.
    • Handle: RePEc:wly:canjec:v:36:y:2003:i:2:p:495-520
    DOI: 10.1111/1540-5982.t01-1-00011
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    References listed on IDEAS

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    1. Brooks, Nancy & Sethi, Rajiv, 1997. "The Distribution of Pollution: Community Characteristics and Exposure to Air Toxics," Journal of Environmental Economics and Management, Elsevier, vol. 32(2), pages 233-250, February.
    2. Kathryn Harrison & Werner Antweiler, 2003. "Incentives for pollution abatement: Regulation, regulatory threats, and non-governmental pressures," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 22(3), pages 361-382.
    3. Hettige, Hemamala & Lucas, Robert E B & Wheeler, David, 1992. "The Toxic Intensity of Industrial Production: Global Patterns, Trends, and Trade Policy," American Economic Review, American Economic Association, vol. 82(2), pages 478-481, May.
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    Cited by:

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    2. Matthew Potoski & Aseem Prakash, 2005. "Covenants with weak swords: ISO 14001 and facilities' environmental performance," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 24(4), pages 745-769.
    3. Naoufel Mzoughi & Sanja Pekovic & Gilles Grolleau, 2007. "The characteristics of chemical firms registering for ISO 14001 or Responsible Care," Economics Bulletin, AccessEcon, vol. 12(29), pages 1-13.
    4. Dechezleprêtre, Antoine & Kozluk, Tomasz & Kruse, Tobias & Nachtigall, Daniel & de Serres, Alain, 2019. "Do Environmental and Economic Performance Go Together? A Review of Micro-level Empirical Evidence from the Past Decade or So," International Review of Environmental and Resource Economics, now publishers, vol. 13(1-2), pages 1-118, April.
    5. Donna Ramirez Harrington, 2013. "Effectiveness Of State Pollution Prevention Programs And Policies," Contemporary Economic Policy, Western Economic Association International, vol. 31(2), pages 255-278, April.
    6. repec:ebl:ecbull:v:12:y:2007:i:29:p:1-13 is not listed on IDEAS
    7. David Riker, 2013. "Environmental Performance and U.S. Exports," The International Trade Journal, Taylor & Francis Journals, vol. 27(4), pages 325-335, September.
    8. Werner Antweiler, 2003. "How Effective Is Green Regulatory Threat?," American Economic Review, American Economic Association, vol. 93(2), pages 436-441, May.
    9. Cole, Matthew A. & Elliott, Robert J.R. & Khemmarat, Khemrutai, 2013. "Local exposure to toxic releases: Examining the role of ethnic fractionalization and polarisation," Ecological Economics, Elsevier, vol. 93(C), pages 249-259.
    10. Villas-Boas, Sofia B & Taylor, Rebecca & Deakin, Elizabeth, 2016. "Incentivizing Pro-social Behavior in Governance: The Effects of Revealing Peer Rankings on Voluntary Service," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt9kz083jj, Department of Agricultural & Resource Economics, UC Berkeley.
    11. Du, Xinming, 2023. "Competing with clean air: Pollution disclosure and college desirability," Ecological Economics, Elsevier, vol. 204(PA).

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    More about this item

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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