Environmental Economics and Policy Studies

, Volume 9, Issue 3, pp 145–166 | Cite as

Environmental policy and economies of scope in facility-level environmental practices

  • Nick Johnstone
  • Julien Labonne
  • Célinc Thevenot


In order to abate pollution, manufacturing facilities can either change their production processes (CPP) or introduce end-of-pipe technologies (EOP). The decision to undertake CPP rather than EOP is a reflection of the existence of economies of scope between production of the facility’s conventional output and abatement of pollution. While this is determined by sectoral technological opportunities, facility size and other factors, environmental management practices, and public policy also play a role. Our results suggest that flexible instruments are more likely to result in CPP. We also provide insights on the role of environmental management, with the mainstreaming of environmental management within the firm leading to more integrated abatement strategies.

Key words

Economies of scope Environmental policy Environmental management Technological innovation 


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Copyright information

© Springer Japan 2008

Authors and Affiliations

  • Nick Johnstone
    • 1
  • Julien Labonne
    • 2
  • Célinc Thevenot
    • 3
  1. 1.Organization for Economic Cooperation and Development (OECD)Paris, Cedex 16France
  2. 2.World BankWashington, DCUSA
  3. 3.Department of EmploymentParis, Cedex 15France

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