Globalization, Firm-Level Characteristics and Environmental Management: A Study of Japan

Matthew A. Cole, Robert J.R. Elliott and Kenichi Shimamoto

Department of Economics, University of Birmingham, UK

Abstract

Using Japanese firm-level data, we identify and quantify the factors that influence the environmental management of Japanese firms. We measure 14 different aspects of a firm’s environmental management and investigate how firm-level characteristics (both internal and external) affect the quantity and effectiveness of environmental management systems and structures. Our results show that one consequence of the growth in international trade and FDI is that Japanese firms are increasingly aware of their environmental obligations and that both regulatory and non-regulatory factors play a role in a firm’s decision to quantify and manage the impact their activities have on the environment.

JEL: D21, Q20, Q56.

Keywords: Globalization, Environment, Firm Characteristics, Management.

¹ Corresponding author: Dr. Robert J. R. Elliott, Department of Economics, University of Birmingham, Edgbaston, Birmingham, B15 2TT, UK. Tel. 44 121 414 6639, Fax. 44 121 414 7377, e-mail: r.j.elliott@bham.ac.uk

We gratefully acknowledge the support of ESRC grant number RES-000-22-0016 and Leverhulme Trust grant number F/00094/AG.