Environmental efficiency and economic performance of manufacturing firms in Japan

  • KANEKO Shinji
    Graduate School for International Development and Cooperation, Hiroshima University
  • FUJII Hidemichi
    Graduate School for International Development and Cooperation, Hiroshima University

Bibliographic Information

Other Title
  • 日本の製造業企業における環境効率と経済効率
  • シンポジウム ロンブン ニホン ノ セイゾウギョウ キギョウ ニ オケル カンキョウ コウリツ ト ケイザイ コウリツ

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Abstract

This study analyzes the linear and quadratic relationships between environmental efficiency and business performance for 77 Japanese manufacturing firms during the period from 2001 to 2003. We employ CO2 emission per sale as environmental efficiency indicator and return on asset (ROA) as economic performance indicator. In order to minimize the heterogeneity of the business characteristics that affects environmental performance, we divided the sample companies into three groups, daily necessities industry, basic material industry, and processing and assembly industry. There is no strong linear relationship between environmental efficiency and business performance in the daily necessities industry. However there is a significant positive and liner relationship between environmental efficiency and economic performance in the basic material industry, while we can find the inverted Kuznets curve in the processing and assembly industry.

Journal

  • ENVIRONMENTAL SCIENCE

    ENVIRONMENTAL SCIENCE 21 (3), 239-244, 2008

    SOCIETY OF ENVIRONMENTAL SCIENCE, JAPAN

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