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Exploring the Locus of Profitable Pollution Reduction

Open access
King, Andrew, Lenox, Michael·2002·Management Science

Abstract

In this paper, we explore the locus of profitable pollution reduction. We propose that managers underestimate the full value of some means of pollution reduction and so under exploit these means. Based on evidence from previous studies, we argue that waste prevention often provides unexpected innovation offsets, and that onsite waste treatment often provides unexpected cost. We use statistical methods to test the direction and significance of the relationship between the various means of pollution reduction and profitability. We find strong evidence that waste prevention leads to financial gain, but we find no evidence that firms profit from reducing pollution by other means. Indeed, we find evidence that the bene fits of waste prevention alone are responsible for the observed association between lower emissions and profitability.

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Citations

Cites

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Cited by

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Metadata

Authors
King, A., & Lenox, M.
Venue
Management Science
Published
2002-02
Volume
48
Issue
2
Pages
289-299
ISSN
  • 0025-1909 (ISSN-L)
  • 1526-5501
OpenAlex
W2119711515
Cited by
1,198
References
4
FWCI
26.61
Type
journal article
Language
en
Open access
green

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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.