2011•International Journal of Sustainable Development & World EcologyRequires access

Environmental regulation and competitive performance: new evidence from a sectoral study

Francesco Testa, Fabio Iraldo, Marco Frey

Abstract

Economic theory provides different perspectives on the relationship between environmental regulation and company environmental and competitive performance. A frequently analysed issue refers to the impact of environmental regulation on company performance. Using qualitative data collected within the recently completed Environmental regulation and Market forces Providing Incentives for Resource Efficiency (EMPIRE) project, we analysed the relationship between environmental regulation and company competitiveness, operating in the building and construction (B&C) sector. Empirical evidence from the correlation analysis emphasises that environmental regulation can be an important driver of competitive performance improvements in relevant segments of the European B&C sector.

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Key concepts: Environmental scanning, Environmental regulation, Incentive, Competitive advantage, Industrial organization, Business, Environmental impact assessment, Resource (disambiguation)