TY - JOUR

T1 - How to Reconcile Environmental and Economic Performance to Improve Corporate Sustainability: Corporate Environmental Strategies in the European Paper Industry

AU - Wagner, Marcus

N1 - Funding Information: I would like to thank three anonymous reviewers for their very helpful comments and suggestions. Valuable comments from Joachim Wagner (University of Lüneburg), Théophile Azomahou and Phu Nguyen Van (University of Strasbourg) as well as Walter Wehrmeyer (University of Surrey) are gratefully acknowledged. Also I would like to thank my colleagues at the Centre for Sustainability Management, University of Lüneburg for providing input during various seminars. Funding for part of this research was provided under the European Commission Environment and Climate Research Programme, contract no. ENV4-CT97-0655.

PY - 2005/7

Y1 - 2005/7

N2 - This paper discusses the relationship between environmental and economic performance and the influence of corporate strategies with regard to sustainability and the environment. After formulating a theoretical model, results are reported from an empirical analysis of the European paper manufacturing industry. New data are used to test hypotheses derived from the theoretical model, using environmental performance indices representing different corporate environmental strategy orientations. In particular, an emissions-based index largely reflecting end-of-pipe strategies and an inputs-based index reflecting integrated pollution prevention are distinguished. For the emissions-based index, a predominantly negative relationship between environmental and economic performance is found, whereas for the inputs-based index no significant link is found. This is consistent with the theoretical model, which predicts the possibility of different relationships. The results also show that for firms with pollution prevention-oriented corporate environmental strategies, the relationship between environmental and economic performance is more positive, thus making improvements in corporate sustainability more likely. Based on this last insight, managerial implications of this are discussed with regard to strategy choices, investment decisions and operations management.

AB - This paper discusses the relationship between environmental and economic performance and the influence of corporate strategies with regard to sustainability and the environment. After formulating a theoretical model, results are reported from an empirical analysis of the European paper manufacturing industry. New data are used to test hypotheses derived from the theoretical model, using environmental performance indices representing different corporate environmental strategy orientations. In particular, an emissions-based index largely reflecting end-of-pipe strategies and an inputs-based index reflecting integrated pollution prevention are distinguished. For the emissions-based index, a predominantly negative relationship between environmental and economic performance is found, whereas for the inputs-based index no significant link is found. This is consistent with the theoretical model, which predicts the possibility of different relationships. The results also show that for firms with pollution prevention-oriented corporate environmental strategies, the relationship between environmental and economic performance is more positive, thus making improvements in corporate sustainability more likely. Based on this last insight, managerial implications of this are discussed with regard to strategy choices, investment decisions and operations management.

KW - Sustainability sciences, Management & Economics

KW - Analysis

KW - Corporate

KW - Econometric

KW - Economic

KW - Environmental

KW - Europe

KW - Industry

KW - Panel

KW - Paper

KW - Performance

KW - Relationship

KW - Strategy

UR - http://www.scopus.com/inward/record.url?scp=20444397041&partnerID=8YFLogxK

UR - https://www.mendeley.com/catalogue/9c6c42aa-3738-3cc1-9813-220d8d2dc080/

U2 - 10.1016/j.jenvman.2004.11.021

DO - 10.1016/j.jenvman.2004.11.021

M3 - Journal articles

C2 - 15939122

VL - 76

SP - 105

EP - 118

JO - Journal of Environmental Management

JF - Journal of Environmental Management

SN - 0301-4797

IS - 2

ER -