The Effect of ISO 14001 on Environmental Performance: Resolving Equivocal Findings

41 Pages Posted: 19 Oct 2015 Last revised: 6 Nov 2015

See all articles by Toshi H. Arimura

Toshi H. Arimura

Waseda University - School of Political Science and Economics

Nicole Darnall

Arizona State University - School of Sustainability; Sustainable Purchasing Research Initiative

Rama Ganguli

Australian Energy Specialist

Hajime Katayama

Waseda University - School of Commerce

Date Written: October 19, 2015

Abstract

Previous research evaluating ISO 14001 certification has shown that it both increases environmental performance and has no effect. We hypothesize that the equivocal findings are due to two factors: institutional pressures arising from differences in regulatory settings across and within countries, and typical methodological approaches for addressing endogeneity. We examine these factors using facility-level data from the United States and Japan for two environmental impacts. After applying Altonji, Elder, and Taber’s (2005) method for dealing with the case where there are no potential instruments, we find evidence that the effectiveness of these environmental governance tools varies across countries and type of environmental impact being assessed.

Keywords: ISO 14001, Environmental management system, Voluntary Environmental Program, Certification program, Environmental performance, Discrete choice model, Endogeneity

JEL Classification: C35, C36, M14, Q20, Q53, Q58

Suggested Citation

Arimura, Toshihide H. and Darnall, Nicole and Ganguli, Rama and Katayama, Hajime, The Effect of ISO 14001 on Environmental Performance: Resolving Equivocal Findings (October 19, 2015). Journal of Environmental Management, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2675902

Toshihide H. Arimura

Waseda University - School of Political Science and Economics ( email )

1-6-1 Nishi-Waseda
Shinjuku-ku, Tokyo 169-8050, Tokyo 169-8050
Japan

Nicole Darnall (Contact Author)

Arizona State University - School of Sustainability ( email )

800 S Cady Mall, PO Box 87402
Tempe, AZ 85287-5402
United States
602.496.0445 (Phone)

HOME PAGE: http://isearch.asu.edu/profile/1811617

Sustainable Purchasing Research Initiative ( email )

Arizona State University
https://sustainability.asu.edu/spri/
United States

Rama Ganguli

Australian Energy Specialist ( email )

Sydney, NSW 2000
Australia

Hajime Katayama

Waseda University - School of Commerce ( email )

School of Commerce, Waseda University
1-6-1 Nishi-Waseda Shinjyuku-ku
Tokyo, Tokyo 169 - 8050
Japan

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