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Article

S. Fore and C.T. Mbohwa

The purpose of the paper is to illustrate application of the cleaner production concept so as to incorporate environmental protection into business performance. The study…

Abstract

Purpose

The purpose of the paper is to illustrate application of the cleaner production concept so as to incorporate environmental protection into business performance. The study analyses areas pertaining to the foundry industry that impact negatively on the environment leading to unsustainable resource utilisation and suggests options for promoting sustainable development within the industry, with specific focus on a foundry in a lower income country (LIC).

Design/methodology/approach

Data were collected using the cleaner production (CP) Methodology. Pre‐assessment and assessment was carried out and options generated. The options included both low cost and capital intensive approaches.

Findings

The paper finds that the CP approach adopted provides clear guidance for generating options and can be used as a practical basis for managerial decision making and policy formulation. Of major concern is resource depletion and pollution associated with the foundry processes. Used resin sand contains toxic chemicals cause leaching and as such, reclamation of resin sand is suggested. There is need for low income countries (LIC's) to identify the best available technologies (BAT's) that are available within the foundry industry and take these aboard or better still improve on them.

Research limitations/implications

This research developed environmental options that can be applied in the foundry industry. However, it can be said that the findings may have limited global application since the analysis was carried out at one Foundry Company.

Practical implications

The paper focuses on a single foundry factory, since the case study approach was used. As such, environmental indicators and options may vary, since the processes from one foundry to another are bound to differ.

Originality/value

This paper is an attempt at combining theoretical and practical ideas to cover the scope of sustainable manufacturing in the setting of a developing country with a view to identify the lessons that can be learnt and to identify the points of departure when compared with studies done elsewhere. The work informs cleaner production assessment at any level, with a focus of production experiences in the foundry industry in a lower technology, developing economy that is less industrialized. The paper establishes a framework of options that can be applied in the foundry industry and other pollution‐intensive industries.

Details

Journal of Engineering, Design and Technology, vol. 8 no. 3
Type: Research Article
ISSN: 1726-0531

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Article

Wayne Fu and Hung-Chung Su

The purpose of this study is to examine the effects of three strategic environmental options on reducing greenhouse gas (GHG) emissions. Namely, we examine the effects of…

Abstract

Purpose

The purpose of this study is to examine the effects of three strategic environmental options on reducing greenhouse gas (GHG) emissions. Namely, we examine the effects of pollution prevention and waste management (PPWM) practices, green supply chain (GSC) practices, and outsourcing on reducing local and supply chain GHG emissions.

Design/methodology/approach

Using ASSET4 and deploying first-differencing fixed-effects panel data models, the study conducts a large-scale empirical examination on the effects of these focal strategic environmental options on GHG emissions.

Findings

This study finds that PPWM practices reduce local GHG emissions and that GSC practices reduce supply chain GHG emissions. The results also show that outsourcing does not reduce local GHG emissions and has an adverse effect on supply chain GHG emissions.

Practical implications

The study findings indicate that environmental practices are effective in reducing GHG emissions. However, they are effective only in their corresponding domain. Further, outsourcing is not a viable strategic option, and managers should be mindful of its undesired environmental consequences.

Originality/value

Firms undertake strategic environmental options, such as implementing environmental practices and reallocating production activities, to improve their environmental performance. Nevertheless, the effectiveness of these options on reducing GHG emissions has not been thoroughly examined.

Details

International Journal of Operations & Production Management, vol. 40 no. 6
Type: Research Article
ISSN: 0144-3577

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Article

Chu Ping Lo

There is great conflict between some developed countries and developing countries regarding attitudes toward reducing global warming (e.g. the USA vs China). The aim of…

Abstract

Purpose

There is great conflict between some developed countries and developing countries regarding attitudes toward reducing global warming (e.g. the USA vs China). The aim of this paper is to argue that open trade doesn't necessarily increase world pollution if clean development mechanism (CDM) is generously undertaken and if the CDM devotes considerable real resources in transfers of the associate abatement technology.

Design/methodology/approach

The impacts of trade on environment can be decomposed into scale, technique and composition effects. This paper incorporates abatement assets into Copeland and Taylor's model to argue that the technique effect stems from an increasing in pollution taxes and in international diffusion of abatement technology; however, the former is fully offset but the latter is facilitated by the CDM.

Findings

While world pollution is jointly determined by the composition and technique effects, in contrast to literature, open trade doesn't necessarily increase world pollution if CDM is generously undertaken with considerable real resources in abatement technology transfers.

Originality/value

Currently, there are more than about one half of the CDM projects that allocate no real resources in technology transfers. This study addresses how voluntary investment of the CDM from the North (e.g. the USA) to the South (e.g. China) might reduce pollution on a global level only if having “generously” technology transfer.

Details

China Agricultural Economic Review, vol. 4 no. 4
Type: Research Article
ISSN: 1756-137X

Keywords

Content available
Article

Faris Alshubiri and Mohamed Elheddad

This study aims to examine the relationship between foreign finance, economic growth and CO2 to investigate if the environmental Kuznets curve (EKC) exists as an empirical…

Abstract

Purpose

This study aims to examine the relationship between foreign finance, economic growth and CO2 to investigate if the environmental Kuznets curve (EKC) exists as an empirical evidence in 32 selected Organization for Economic Co-operation and Development (OECD) countries.

Design/methodology/approach

This study used quantitative analysis to test two main hypotheses: H1 is the U-shape relationship between foreign finance and environment, and H2 is the N-shaped association between economic growth and environment. In doing so, this study used panel data techniques. The panel set contained 32 countries over the period from 1990 to 2015, with 27 observations for each country. This study applied a panel OLS estimator via fixed-effects control to address heterogeneity and mitigate endogeneity. Generalized method of moments (GMM) with fixed effects-instrumental variables (FE-IV) and diagnostic tests were also used.

Findings

The results showed that foreign finance and environmental quality have an inverted U-shaped association. The three proxies’ foreign investment, foreign assets and remittance in the first stages contribute significantly to CO2 emissions, but after the threshold point is reached, these proxies become “environmentally friendly” by their contribution to reducing CO2 emissions. Also, a non-linear relationship denotes that foreign investment in OECD countries enhances the importance, as a proxy of foreign finance has greater environmental quality than foreign assets. Additionally, empirical results show that remittances received is linked to the highest polluted levels until a threshold point is reached, at which point it then helps reduce CO2 emissions. The GMM and FE-IV results provide robust evidence on inverse U-shaped relationship, while the N-shaped relationship explains that economic growth produces more CO2 emissions at the first phase of growth, but the quadratic term confirms this effect is negative after a specific level of GDP is reached. Then, this economic growth makes the environment deteriorate. These results are robust even after controlling for the omitted variable issue. The IV-FE results indicate an N-shaped relationship in the OECD countries.

Practical implications

Most studies have used different economic indicators as proxies to show the effects of these indicators on the environment, but they are flawed and outdated regarding the large social challenges facing contemporary, socio-financial economic systems. To overcome these disadvantages, the social, institutional and environmental aspects of economic development should also be considered. Hence, this study aims to explain this issue as a relationship with several proxies in regard to environmental, foreign finance and economic aspects.

Originality/value

This paper uses updated data sets for analyzing the relationship between foreign finance and economic growth as a new proxy for pollution. Also, this study simulates the financial and environmental future to show their effect on investments in different OECD countries. While this study enhances the literature by establishing an innovative control during analysis, this will increase to add value. This study is among the few studies that empirically investigate the non-linear relationship between finance and environmental degradation.

Details

International Journal of Climate Change Strategies and Management, vol. 12 no. 2
Type: Research Article
ISSN: 1756-8692

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Book part

Boqiong Yang, Xiaobing Wang and Jun Yang

The huge flow of foreign direct investment (FDI) in recent decades has prompted concern among policy-makers and researchers regarding its impact on the environment, as…

Abstract

The huge flow of foreign direct investment (FDI) in recent decades has prompted concern among policy-makers and researchers regarding its impact on the environment, as well as its contribution to China’s economic growth. In this study, by combining FDI and trade pollution theory, we establish a model to evaluate the impact of FDI on pollution, which facilitates testing the “pollution haven” hypothesis. Our results indicate that FDI is concentrated in pollution-intense industries. Moreover, it is necessary to undertake further research on FDI pollution with new data after environmental regulation.

Details

Globalization and the Environment of China
Type: Book
ISBN: 978-1-78441-179-4

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Book part

Sarianna M Lundan

Empirical evidence from the past decade confirms that multinationals increasingly see the environment as a strategic issue, whether in terms of limiting damage to the…

Abstract

Empirical evidence from the past decade confirms that multinationals increasingly see the environment as a strategic issue, whether in terms of limiting damage to the bottom line from adverse publicity, or actually gaining in the marketplace by pioneering more environmentally conscious solutions. During the same period, NGOs have become a visible part of the political process, in influencing the environmental strategies of multinationals through direct action, as well as by forming broader coalitions aimed at influencing the agenda at multilateral institutions such as the WTO and the OECD regarding environmental concerns and the behavior of multinationals. This chapter explores the importance of different environmental drivers on the behavior of firms in the pulp and paper industry, with particular focus on the role of Greenpeace in changing industry practices. We discuss the extent to which the paper industry might be a special case in this respect, and conclude by assessing the implications for public policy.

Details

Multinationals, Environment and Global Competition
Type: Book
ISBN: 978-1-84950-179-8

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Article

Selim Cagatay and Hakan Mihci

To construct an index (index of environmental sensitivity performance) to be used in a cross‐country trade model in order to analyze the effect of various degrees of…

Abstract

Purpose

To construct an index (index of environmental sensitivity performance) to be used in a cross‐country trade model in order to analyze the effect of various degrees of environmental stringency on the trade patterns, and especially on the export performance of the countries.

Design/methodology/approach

The gravity model of trade is used in order to find the effects of environmental stringency on the variation in trade flows.

Findings

The study shows that environmental stringency has an important impact on the export of the countries. The impact of the degree of environmental stringency on the exports is significantly negative suggesting an inverse relationship between export values and relative environmental sensitivity performance of the nations.

Originality/value

This study supports the argument that the environmental stringency level differential between developing and developed nations is a crucial criteria in terms of explaining shifts in the trade patterns and international specialization of the countries.

Details

Journal of Economic Studies, vol. 33 no. 1
Type: Research Article
ISSN: 0144-3585

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Book part

Sarianna M Lundan

This chapter presents a conceptual framework to understand the role of multinational enterprises in the process of environmental standard setting in the global economy…

Abstract

This chapter presents a conceptual framework to understand the role of multinational enterprises in the process of environmental standard setting in the global economy. Inside the multinational, we discuss the impact of path-dependency and irreversibility on environmental investment, and the importance of the integrated network structure of the multinational in enabling the transfer of standards within the firm. Outside the firm, we discuss the impact of regulation and market forces, and particularly the role of NGOs, in triggering change in firm behavior both at home and abroad. We conclude by considering the impact of supranational institutions on the environmental behavior of multinationals.

Details

Multinationals, Environment and Global Competition
Type: Book
ISBN: 978-1-84950-179-8

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Article

Zhongyi Xiao

This paper aims to, under the framework of the pollution haven hypothesis (PHH), test the theory that foreign direct investment (FDI) creates an intra-host country…

Abstract

Purpose

This paper aims to, under the framework of the pollution haven hypothesis (PHH), test the theory that foreign direct investment (FDI) creates an intra-host country pollution haven in developing nations by studying the contemporary case of China.

Design/methodology/approach

This empirical analysis has used a panel dataset of 30 provinces that was analyzed for the period of 1997-2011. An Oaxaca decomposition was also implemented to examine the effects of environmental stringency on regional pollution.

Findings

The estimates indicate that openness to FDI generally appears to be good for the environment. The results of estimation show that the western region of China has developed a potential “comparative advantage” in pollution-intensive industries, thanks to the strong incentive of economic expansion. However, further estimates concerning the location decisions of FDI suggest that the providers of FDI still prefer to locate in the coastal regions of China, where a tighter environmental regulation policy has been imposed. The findings suggest that the better infrastructure and technology spillover of environmental policy-making might be more attractive to FDI than comparatively weak environmental stringency.

Originality/value

This study applies a model advanced in previous theoretical literature which divides the effects of trade into the categories of scale, technique and composition. It also contributes to the understanding of the PHH in the context of intra-host country analysis.

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Book part

Boqiong Yang, Jun Yang and Qiran Zhao

Accompany with the development of economy, the environment becomes deteriorating, especially in developing countries. Many studies found that foreign direct investment…

Abstract

Accompany with the development of economy, the environment becomes deteriorating, especially in developing countries. Many studies found that foreign direct investment (FDI) with the effect of technology spillover would be one of the best ways to solve the environmental problem. By using the model of trade theory distinguishing between environmental and productive technology and separately analyzing the technology spillover effect of these two technologies on reducing environmental pollution in host countries, we find that the pollution problem could be worse if more intensive pollution industrial structure is induced by the environmental technology development. Naturally, this did not mean restraining the development of technology, but rather emphasizing the importance of the regulation and the industrial structure.

Details

Globalization and the Environment of China
Type: Book
ISBN: 978-1-78441-179-4

Keywords

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