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Does ISO14001 raise firms f awareness of environmental protection? |Case from Vietnam

Author

Listed:
  • Bin Ni

    (Graduate School of Economics, Osaka University)

  • Hanae Tamechika

    (Graduate School of Economics, Nagoya City University)

  • Tsunehiro Otsuki

    (Graduate School of Economics, Osaka University)

  • Keiichiro Honda

    (Department of Administration, Prefectural University of Kumamoto)

Abstract

Environmental protection is an inevitable issue that developing countries all have to deal with during the process of inviting foreign direct investment (FDI). However, high correlation between FDI and pollution doesn ft necessarily indicate that foreign firms are to blame. In this paper, we apply firm-level panel data in Vietnam and unique information on waste discharge to show that foreign firms are actually more active to acquire ISO14001, a voluntary environmental standard. And the adoption will in turn improve firms f performance in waste control. It also increases firms f welfare as well as their productivity level. This paper provides strong evidence that firms f efforts towards corporate social responsibility will eventually benefit themselves as well.

Suggested Citation

  • Bin Ni & Hanae Tamechika & Tsunehiro Otsuki & Keiichiro Honda, 2016. "Does ISO14001 raise firms f awareness of environmental protection? |Case from Vietnam," Discussion Papers in Economics and Business 16-05, Osaka University, Graduate School of Economics.
    • Handle: RePEc:osk:wpaper:1605
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    FDI; ISO14001; Vietnam; environmental protection;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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