Environmental and Resource Economics

, Volume 57, Issue 3, pp 431–452 | Cite as

Improving Environmental Performance: A Challenge for Romania

  • Robert Sova
  • Christophe Rault
  • Guglielmo Maria Caporale
  • Anamaria Sova


The transition process in Central and Eastern Europe was associated with growing environmental awareness. This paper analyses the determinants of pollution abatement and control expenditure at plant level in the case of Romania using survey data and a multilevel regression model. Our findings suggest that, although Romania has improved its environmental performance, formal and informal regulations are still only partially developed owing to the difficulties of economic transition, and heterogeneity across regions remains considerable.


Pollution abatement and control expenditure Transition economy Multilevel regression model (MRM) 

JEL Classification

Q52 C29 C40 


  1. Anderson B, Di Maria C (2011) Abatement and allocation in the pilot phase of the EU ETS. Environ Resour Econ 48(1):83–103CrossRefGoogle Scholar
  2. Chan ESW, Wong SCK (2006) Motivations for ISO 14001 in the hotel industry. Tour Manag 27(3):481–492CrossRefGoogle Scholar
  3. Coase RH (1960) The problem of social cost. J Law Econ 3:1–44CrossRefGoogle Scholar
  4. Corbett CJ, Kirsch DA (2004) Response to “Revisiting ISO 14000 diffusion: a new “Look” at the drivers of certification. Prod Oper Manag 13(3):268–271CrossRefGoogle Scholar
  5. Delmas M, Toffel M (2004) Stakeholders and environmental management practices: an institutional framework. Bus Strateg Environ 13:209–222CrossRefGoogle Scholar
  6. Di Maggio PJ, Powell WW (1983) The iron cage revisited: institutional isomorphism and collective rationality in organizational fields. Am Sociol Rev 48(2):147–160CrossRefGoogle Scholar
  7. Ellerman AD, Buchner BK (2008) Over-allocation or abatement? A preliminary analysis of the EU ETS based on the 2005–06 emissions data. Environ Resour Econ 41(2):267–287CrossRefGoogle Scholar
  8. Fredriksson PG, Vollebergh RJH (2009) Corruption, federalism, and policy formation in the OECD: the case of energy policy. Publ Choice 140(1):205–221CrossRefGoogle Scholar
  9. Greene WH (2002) Econometric analysis. Prentice Hall, New JerseyGoogle Scholar
  10. Guler I, Guillen MF, MacPherson JM (2002) Global competition institutions and the diffusion of organizational practices: the international spread of the ISO 9000 quality certificates. Adm Sci Q 47(2):207–232CrossRefGoogle Scholar
  11. Gunningham N (1995) Environment self-regulation and the chemical industry: assessing responsible care. Law Policy 17(1):57–108CrossRefGoogle Scholar
  12. Haller AS, Murphy L (2012) Corporate expenditure on environmental protection. Environ Resour Econ 51(2):277–296CrossRefGoogle Scholar
  13. Hartman RS, Wheeler D, Singh M (1994) The cost of air pollution abatement, policy. World Bank, WashingtonGoogle Scholar
  14. Hartman RS, Huq M, Wheeler D (1997) Why paper mills clean up: determinants of pollution abatement in four asian countries. World Bank Publications, UKGoogle Scholar
  15. Hoffman AJ (2001) Linking organizational and field-level analyses—the diffusion of corporate environmental practice. Organ Environ 14(2):133–156CrossRefGoogle Scholar
  16. Jones BS, Steenburgen MR (2002) Modelling multilevel data structures. Am J Polit Sci 46(1):218–237CrossRefGoogle Scholar
  17. Lise W, Sijm J, Hobbs BF (2010) The Impact of the EU ETS on Prices, Profits and Emissions in the Power Sector: Simulation Results with the COMPETES EU20 Model. Environmental and Resource Economics 47(1):23–44Google Scholar
  18. Low P (1992) International trade and the environment. World Bank Discussion Papers, 159, World Bank, WashingtonGoogle Scholar
  19. Mahieu PA, Riera P, Giergiczny M (2012) Determinants of willingness-to-pay for water pollution abatement: a point and interval data payment card application. J Environ Manag 108:49–53CrossRefGoogle Scholar
  20. Neumayer E, Perkins R (2004) What explains the uneven take-up of ISO 14001 at the global level? A panel-data analysis. Environ Plan 36(5):823–839CrossRefGoogle Scholar
  21. OECD (2001) The firm, the environment and Public Policy Working Party on National Environmental Policy. ENV/EPOC/WPNET 31/FINALGoogle Scholar
  22. Panayotou T, Schatzki T, Limvorapitak Q (1997) Differential industry response to formal and informal environmental regulations in newly industrializing economies: the case of Thailand. Mimeo Harvard Institute for International DevelopmentGoogle Scholar
  23. Pigou AC (1920) The economics of welfare. Macmillan, LondonGoogle Scholar
  24. Rivera J, de Leon P (2004) Is greener whiter? Voluntary environmental performance of Western Ski areas. Policy Stud J 32(3):417–437CrossRefGoogle Scholar
  25. Rivera J, de Leon P, Koerber C (2006) Is greener whiter yet? The sustainable slopes program after five years. Policy Stud J 34(2):195–221CrossRefGoogle Scholar
  26. Seroa da Motta R (2006) Analyzing the environmental performance of the Brazilian industrial sector. Ecol Econ 57(2):269–281CrossRefGoogle Scholar
  27. Shimshack JP, Ward MB (2008) Enforcement and over-compliance. J Environ Econ Manag 55(1):90–105CrossRefGoogle Scholar
  28. Shin S (2005) The role of the government in voluntary environmental protection schemes: the case of ISO 14001 in China. Issues Stud 41(4):141–173Google Scholar
  29. Viadiu MF, Casadesús FM, Saizarbitoria MH (2006) ISO 9000 and ISO 14000 standards: an international diffusion model. Int J Oper Prod Manag 26(1–2):141–165CrossRefGoogle Scholar
  30. Wang H (2002) Pollution regulation and abatement efforts: evidence from China. Ecol Econ 41:85–94CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media Dordrecht 2013

Authors and Affiliations

  • Robert Sova
    • 1
    • 2
  • Christophe Rault
    • 3
  • Guglielmo Maria Caporale
    • 4
    • 5
    • 6
  • Anamaria Sova
    • 7
  1. 1.ASEBucharest University of Economics StudiesBucharestRomania
  2. 2.CESSorbonne UniversityParisFrance
  3. 3.Toulouse Business SchoolToulouseFrance
  4. 4.Brunel UniversityLondonUK
  5. 5.CESifoMunichGermany
  6. 6.DIWBerlinGermany
  7. 7.Economic Business Research CentreBucharestRomania

Personalised recommendations