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Effects of the ISO 14001 Voluntary E...

Song, Danbee.

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Effects of the ISO 14001 Voluntary Environmental Program on Economic and Environmental Performance.

Record Type:	Electronic resources : Monograph/item
Title/Author:	Effects of the ISO 14001 Voluntary Environmental Program on Economic and Environmental Performance./
Author:	Song, Danbee.
Published:	Ann Arbor : ProQuest Dissertations & Theses, : 2019,
Description:	114 p.
Notes:	Source: Dissertations Abstracts International, Volume: 81-05, Section: A.
Contained By:	Dissertations Abstracts International81-05A.
Subject:	Environmental economics. -
Online resource:	http://pqdd.sinica.edu.tw/twdaoapp/servlet/advanced?query=27712132
ISBN:	9781392599570

Effects of the ISO 14001 Voluntary Environmental Program on Economic and Environmental Performance.
Song, Danbee.

Effects of the ISO 14001 Voluntary Environmental Program on Economic and Environmental Performance. - Ann Arbor : ProQuest Dissertations & Theses, 2019 - 114 p.

Source: Dissertations Abstracts International, Volume: 81-05, Section: A.

Thesis (Ph.D.)--The Ohio State University, 2019.

This item must not be sold to any third party vendors.

This dissertation explores the effects of adopting ISO 14001, an international voluntary environmental program, on a firm's economic and environmental performance.The first chapter empirically investigates the economic benefits of adopting ISO 14001 on technical efficiency. The ISO 14001 program seeks to continually reduce inefficient resource usage and waste generation in the production process through the implementation of an environmental management system. Furthermore, through employee training, ISO 14001 can infuse a cost-saving mindset that permeates company-wide. Therefore, firms that adopt the program can expect efficiency improvements. The stochastic frontier approach is used to measure the individual firm's inefficiency, while an instrumental variable approach is employed to account for the potential endogeneity of ISO adoption. Using a panel of South Korean manufacturing firms, the results reveal that the adoption of ISO 14001 significantly improves firm efficiency with an estimated 3.2 percent boost in output value, on average. The disaggregated analysis by the industrial sectors, based on pollution intensity, shows that low polluting firms experience significant efficiency improvements while high polluting firms do not. In other words, the overall positive effect of ISO is largely spurred by significant efficiency gains among low-polluting firms.In the second chapter, the gravity model is employed to examine whether or not the adoption of ISO 14001 boosts the volume of exports of the adopting firms. ISO 14001 can act as an eco-label in the international trade market, because the certification is audited by a third party, which represents identifiable information about a firm's environmental record. We also analyze whether the effect differs based on destination countries, due to different levels of environmental governance and interests. We use the Poisson Pseudo Maximum Likelihood estimator with various fixed effects to account for zero-value trade data and heteroscedasticity-induced inconsistency in linear models (Santos-Silva and Tenreyro, 2006). Industry-level export panel data from South Korea to the various destination countries over the 1988-2015 period is analyzed. The results indicate that ISO 14001 has a positive impact on the export volume of the ISO certified South Korean firms. Furthermore, the size of the impact varies with the level of the economic development of the export destination countries. In particular, the impact is significantly larger when the importers are economically developed countries, implying that ISO 14001 is effective in circumventing stricter environmental requirements and mitigating the risk of export barriers.The third chapter analyzes the impact of ISO 14001 certification on environmental performance in South Korea using data on greenhouse gas (CO2) emissions from 2011 to 2014. Many of the benefits of ISO discussed in previous studies (e.g., reputational effect, compliance effect) are based on the expectation that firms would actually improve their environmental performance by adopting ISO 14001. An instrumental variable approach is employed to identify the causal effect of ISO 14001 on CO2 emissions. The empirical findings reveal that a firm's ISO 14001 adoption significantly reduces the total amount of greenhouse gas emissions, as well as the intensity, on average. Furthermore, the results illustrate the possibility of a learning effect of ISO 14001; as firms accumulate experience with ISO 14001, their emissions decrease further.

ISBN: 9781392599570Subjects--Topical Terms:

535179
Environmental economics.
Subjects--Index Terms:

Environmental performance

Effects of the ISO 14001 Voluntary Environmental Program on Economic and Environmental Performance.
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300 $a 114 p.
500 $a Source: Dissertations Abstracts International, Volume: 81-05, Section: A.
500 $a Advisor: Sam, Abdoul.
502 $a Thesis (Ph.D.)--The Ohio State University, 2019.
506 $a This item must not be sold to any third party vendors.
520 $a This dissertation explores the effects of adopting ISO 14001, an international voluntary environmental program, on a firm's economic and environmental performance.The first chapter empirically investigates the economic benefits of adopting ISO 14001 on technical efficiency. The ISO 14001 program seeks to continually reduce inefficient resource usage and waste generation in the production process through the implementation of an environmental management system. Furthermore, through employee training, ISO 14001 can infuse a cost-saving mindset that permeates company-wide. Therefore, firms that adopt the program can expect efficiency improvements. The stochastic frontier approach is used to measure the individual firm's inefficiency, while an instrumental variable approach is employed to account for the potential endogeneity of ISO adoption. Using a panel of South Korean manufacturing firms, the results reveal that the adoption of ISO 14001 significantly improves firm efficiency with an estimated 3.2 percent boost in output value, on average. The disaggregated analysis by the industrial sectors, based on pollution intensity, shows that low polluting firms experience significant efficiency improvements while high polluting firms do not. In other words, the overall positive effect of ISO is largely spurred by significant efficiency gains among low-polluting firms.In the second chapter, the gravity model is employed to examine whether or not the adoption of ISO 14001 boosts the volume of exports of the adopting firms. ISO 14001 can act as an eco-label in the international trade market, because the certification is audited by a third party, which represents identifiable information about a firm's environmental record. We also analyze whether the effect differs based on destination countries, due to different levels of environmental governance and interests. We use the Poisson Pseudo Maximum Likelihood estimator with various fixed effects to account for zero-value trade data and heteroscedasticity-induced inconsistency in linear models (Santos-Silva and Tenreyro, 2006). Industry-level export panel data from South Korea to the various destination countries over the 1988-2015 period is analyzed. The results indicate that ISO 14001 has a positive impact on the export volume of the ISO certified South Korean firms. Furthermore, the size of the impact varies with the level of the economic development of the export destination countries. In particular, the impact is significantly larger when the importers are economically developed countries, implying that ISO 14001 is effective in circumventing stricter environmental requirements and mitigating the risk of export barriers.The third chapter analyzes the impact of ISO 14001 certification on environmental performance in South Korea using data on greenhouse gas (CO2) emissions from 2011 to 2014. Many of the benefits of ISO discussed in previous studies (e.g., reputational effect, compliance effect) are based on the expectation that firms would actually improve their environmental performance by adopting ISO 14001. An instrumental variable approach is employed to identify the causal effect of ISO 14001 on CO2 emissions. The empirical findings reveal that a firm's ISO 14001 adoption significantly reduces the total amount of greenhouse gas emissions, as well as the intensity, on average. Furthermore, the results illustrate the possibility of a learning effect of ISO 14001; as firms accumulate experience with ISO 14001, their emissions decrease further.
590 $a School code: 0168.
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650 4 $a Economics. $3 517137
650 4 $a Public policy. $3 532803
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