Environmental and Resource Economics

, Volume 44, Issue 1, pp 85–106 | Cite as

Adoption of Pollution Prevention Techniques: The Role of Management Systems and Regulatory Pressures

  • Madhu Khanna
  • George Deltas
  • Donna Ramirez Harrington


This paper investigates the extent to which firm level technological change that reduces unregulated emissions is driven by regulatory pressures, and firms’ technological and organizational capabilities. Using a treatment effects model with panel data for a sample of S&P 500 firms over the period 1994–1996, we find that organizational change in the form of Total Quality Environmental Management leads firms to adopt pollution prevention practices, after controlling for the effects of various regulatory pressures and firm-specific characteristics. We find that the threat of anticipated regulations and the presence of ‘complementary assets’ is important for creating the incentives and an internal capacity to undertake incremental adoption of pollution prevention techniques.


Environmental management Toxic releases Total Quality Management 

JEL Classification

O32 O38 Q2 


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Copyright information

© Springer Science+Business Media B.V. 2009

Authors and Affiliations

  • Madhu Khanna
    • 1
  • George Deltas
    • 2
  • Donna Ramirez Harrington
    • 3
  1. 1.Department of Agricultural and Consumer EconomicsUniversity of IllinoisUrbanaUSA
  2. 2.Department of EconomicsUniversity of IllinoisChampaignUSA
  3. 3.Department EconomicsUniversity of VermontBurlingtonUSA

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