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Environmental and Resource Economics

, Volume 46, Issue 3, pp 303–329 | Cite as

Effect of Corporate Economic Performance on Firm-Level Environmental Performance in a Transition Economy

  • Dietrich EarnhartEmail author
  • Lubomir Lizal
Article

Abstract

This paper analyzes the effect of corporate economic performance, as measured by value added, on firm-level environmental performance in a transition economy. In particular, it analyzes this economic performance effect using an unbalanced panel of Czech firms for the years 1995–1998. It assesses whether successful economic performance begets or undermines good environmental performance. This connection seems especially important in transition economies since firms are dramatically restructuring their economic management approaches during transitional periods. A majority of the analytical results indicate that successful economic performance undermines good environmental performance, possibly indicating that more focused managerial efforts to improve economic outcomes may distract efforts to manage environmental matters better.

Keywords

Czech Republic Environmental protection Financial performance Pollution 

JEL Classification

D21 G39 Q53 

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Copyright information

© Springer Science+Business Media B.V. 2010

Authors and Affiliations

  1. 1.Department of EconomicsUniversity of KansasLawrenceUSA
  2. 2.CERGE-EI (Joint Workplace of Charles University and the Academy of Sciences of the Czech Republic)PragueCzech Republic
  3. 3.William Davidson Institute (WDI)University of MichiganAnn ArborUSA
  4. 4.Centre for Economic Policy ResearchLondonUK

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