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Frontiers of Economics in China

Front. Econ. China    2014, Vol. 9 Issue (1) : 138-163
Globalization and Voluntary Environmental Management in Developing Countries
Madhu Khannaa1(),Yuan Liao2()
1. Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign. Urbana, IL 61801, USA
2. Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign. Urbana, IL 61801, USA
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Weak capacity to enforce regulations and sanction violators, and an emphasis on economic growth in developing countries has led to concerns about worsening environmental conditions and the potential for these countries becoming pollution havens for multinational corporations. International environmental standards, voluntary programs, and public disclosure programs have gained popularity because they engage market participants in providing incentives for self-regulation and have the potential to substitute for the lack of domestic regulatory capacity. This paper analyzes the motivations for firms to undertake voluntary environmental management and reviews the empirical evidence on the type of firms participating in such initiatives and their effectiveness in improving environmental performance. We also consider the special case of China that has witnessed dramatic globalization following its acceptance into the World Trade Organization and participation by its firms in global supply chains. We conclude with a discussion of the effectiveness of these efforts as a substitute for weak regulatory and civic society pressures in these countries.

Keywords voluntary programs      ISO 14001      public disclosure programs      foreign direct investment      export-oriented firms     
Issue Date: 16 May 2014
 Cite this article:   
Madhu Khannaa,Yuan Liao. Globalization and Voluntary Environmental Management in Developing Countries[J]. Front. Econ. China, 2014, 9(1): 138-163.
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