Comparative Economic Studies

, Volume 48, Issue 4, pp 619–640 | Cite as

Explaining Environmental Management in Central and Eastern Europe

  • Randall Bluffstone
  • Thomas Sterner


The paper analyses the adoption of various environmental management systems (EMSs) by industrial firms in Central and Eastern Europe approximately 8 years after economic transitions began. Of special interest are the effects of privatisation, export orientation, public pressure and environmental regulation on adoption. Using logit regression models, it is found that several transition and environmental regulatory factors spur EMS adoption. Better environmental regulatory systems and anticipation of more stringent future regulation appear to encourage EMS. Public information regarding firms' pollution emissions, foreign direct investment and export dependency also appear to be important, but there is no evidence that firm ownership is related to EMS adoption.


environmental management central and Eastern Europe economic transition 

JEL Classifications

p26 Q58 Q55 



We thank Dietrich Earnhart, Irene Henriques and Perry Sadorsky for helpful comments on drafts of this paper and Theo Panayotou for his leadership while Bluffstone was at the Harvard Institute for International Development. We also thank the Swedish international development cooperation agency, Sida, for financing the analysis that led to this paper and USAID for supporting the data collection. Finally, we acknowledge the contributions of the researchers at Bulgarian Industrial Association (Bulgaria), TARKI (Hungary), Environmental Policy Center (Lithuania), Institute of Economics, Polish Academy of Sciences (Poland), CESEP (Romania) and Incoma (Slovakia), which collected the data used in this paper.


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Copyright information

© Palgrave Macmillan Ltd 2006

Authors and Affiliations

  • Randall Bluffstone
    • 1
  • Thomas Sterner
    • 2
  1. 1.Department of EconomicsPortland State UniversityPortlandUSA
  2. 2.Department of EconomicsUniversity of GothenburgGothenburgSweden

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