Air and Water Pollution Regulation: Accomplishments and Economic Consequences

By Martin Freedman; Bikki Jaggi | Go to book overview

Chapter 7
LITERATURE REVIEW OF POLLUTION AND ECONOMIC PERFORMANCE

A number of academic studies have been conducted to examine the relationship between pollution performance and economic performance. Some of these studies are based on theoretical constructs, while others are based on empirical analyses. The theoretical studies are primarily macroeconomic in nature, whereas the empirical studies have appeared in the economics, management and accounting literature. The empirical investigations appearing in the management and accounting literature have primarily utilized the pollution data bases generated by the studies sponsored by Council on Economic Priorities (CEP)

We will review the important studies to provide readers with a general understanding of what has so far been done in the area of pollution regulations and investments, and especially with regard to the impact of corporate pollution activities on their economic and market performance.

The chapter has been divided into five parts. In the first part, we will review the studies conducted under the auspices of the Council on Economic Priorities for developing data bases for highly polluting industries. The second part discusses the macroeconomic studies on pollution regulations and investments. The objective of this discussion is to highlight different viewpoints on the impact of firms' pollution activities or pollution-related expenditures on their economic performance, as reflected by their productivity. In the third part, we will review the empirical studies dealing with the impact of firms' pollution performance on their economic performance. (Most of these studies have used pollution information generated by CEP studies.) The fourth part presents a discussion of studies dealing with the impact of pollution performance on firms' market performance. Finally,

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