Environmental Policy and Economies of Scope in Facility-Level Environmental Practices

53 Pages Posted: 30 Nov 2007

See all articles by Julien Labonne

Julien Labonne

World Bank

Nick Johnstone

International Energy Agency - Energy Statistics Division

Date Written: January 25, 2007

Abstract

In order to abate pollution manufacturing facilities can either change their production processes or introduce end-of-pipe technologies. The decision to undertake CPP rather than EOP is a reflection of the existence of economies of scope between production of the facility's conventional output and abatement of pollution. While this id determined by sectoral technological opportunities, facility size and other factors, environmental management practices and public policy also play a role. Our results suggest that flexible instruments are more likely to result in CPP. We also provide insights on the role of environmental management within the firm.

Keywords: economies of scope, environmental policy, environmental management, technological innovation

JEL Classification: M11, M14, Q52, Q55, Q58, 033

Suggested Citation

Labonne, Julien and Johnstone, Nick, Environmental Policy and Economies of Scope in Facility-Level Environmental Practices (January 25, 2007). Available at SSRN: https://ssrn.com/abstract=1035661 or http://dx.doi.org/10.2139/ssrn.1035661

Julien Labonne

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Nick Johnstone (Contact Author)

International Energy Agency - Energy Statistics Division ( email )

United States

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