An Expository Analysis on Environmental Compliance of Indian Leather Industry (original) (raw)
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A Study on the Environmental Compliance on Indian Leather Industry - Ready
Indian Leather industry is recognized as one of the most promising foreign exchange earning sectors since early '70s of the previous century. The industry was hard hit by two consecutive foreign environment-bans since 1989. Along with that, few domestic environmental regulations also resulted into closure down of a number of leather tanneries in this period.
FOREIGN TRADE REVIEW, SSN 0971-7633) , Vol. XLVII, No. 2 (July 2012): pp. 3-36.
Indian Leather industry is recognized as one of the most promising foreign exchange earning sectors since early ’70s of the previous century. The industry was hard hit by two consecutive foreign environment-bans since 1989. Along with that, few domestic environmental regulations also resulted into closure down of a number of leather tanneries in this period. However, the government intervention and the successive compliance measures adopted by the firms ultimately helped the industry to gain momentum in its export sector. This paper analyses the far reaching impact of these environmental regulations on export sector of Indian Leather Industry. Whether this boost in leather export marks a trade off relation between environmental quality and volume of exports is a matter of debate, attempted to be resolved here. This paper, within the limitations of data availability regarding environmental statistics, has determined a positive relation between environmental quality and volume of leather exports and justified that instead of Pollution Haven Hypothesis, Indian Leather Industry rather confirms Porter’s Hypothesis.
Environmental Standards and Trade: Evidence from Indian Textile & Leather Industry
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We use a …rm-level data set comprising of leather and textile sector of India for the period 1989-2003 to test the eect on industries dominated with small and medium-sized …rms with respect to stringent compulsory technical envi- ronmental standards. We consider both foreign and domestic regulations. We also explored how the enforcement eect varies across …rms of dierent size. We …nd (a) the regulations did add to the pollution-abatement cost of the …rms'signi…cantly, and also increased the export revenues, but exerted a neg- ative in‡uence on productivity level of the …rms, (b) the pollution-abatement cost of a …rm, its R&D expenditure, productivity and total cost signi…cantly account for the exit decision of a …rm, and (c) there is a signi…cant amount of heterogeneity involved in the eect of the regulations on the dierent size
Global Standards and the Dynamics of Environmental Compliance in India's Leather Industry
Oxford Development Studies 33(2). June 2005. With Poonam Pillai. Under what conditions can small suppliers and small-firm-dominated industries comply with stringent standards without compromising their trade competitiveness? This question is at the heart of a controversial debate about the emergence of environmental standards as a new variable in global trade and market access. There are few documented cases of success and the literature remains sceptical about the ability of small supplier firms to comply with stringent environmental regulations. This paper draws on the Indian leather industry's relatively effective compliance with two German bans on Azo dyes and PCPs to argue that the supposed trade-off between environmental compliance and export competitiveness is not inevitable. Critical to India's compliance with the PCP and Azo dye ban was not merely private governance mediated by lead firms and global buyers but also the institutionalization of compliance by the Indian state, which became deeply involved in diffusing the new standards. The paper examines how and why the state got involved in ways that generated—and sustained—a process of negotiated collective action and broad-based environmental compliance by a small-firm-dominated sector.
Firms' and States' Responses to Laxer Environmental Standards
Policy Research Working Papers
The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.
Global Crisis, Environment Volatility and Expansion of Tthe Indian Leather Industry
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The present paper attempts to fill in the gap that exists in the Indian Leather industry, and makes some suggestions regarding the expansion of the by examining technical efficiency (TE) of individual leather producing firms for some selected years since the early-1980s. Analyzing the industry’s firm-level data through the Data Envelopment Analysis the paper observes a significant positive association between a firm’s size and its TE, but no such conclusive relation between a firm’s age and TE. It also finds significant variation in TE across firms in different groups of states as well as under different organizational structures. [Working Paper 426]
International regulations and environmental performance
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This article employs the data envelopment analysis (DEA) approach to compute the environmental performance of all but two Organisation for Economic Cooperation and Development (OECD) countries. It is found that although the environmental performance of countries differs over time, Poland and Hungary are the two best performers for all periods while Italy, Japan, Austria and Switzerland are ranked among the worst. The effect of international regulations and some observed characteristics of countries on environmental performance are also investigated. International regulations are reported to have a positive effect on environmental performance.
The relationship between environmental efficiency and manufacturing firm's growth
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This paper investigates the empirical link between emission intensity and economic growth, using a very large data set of 61,219 Italian manufacturing firms over the period [2000][2001][2002][2003][2004]. As a measure of lagged environmental performance (efficiency) at firm level we exploit NAMEA sector for CO2, NOx, SOx data over 1990-1999. The paper tests the extent to which (past) environmental efficiency/intensity, which is driven by structural features and firm strategic actions, including responses to policies, influences firms growth. Our results show, first, a typical trade off generally appearing for the three core environmental emissions we analyse: lower environmentally efficiency in the recent past allows higher degrees of freedom to firms and relax the constraints for growth, at least in this short/medium term scenario. Nevertheless, the size of the estimated coefficients is not large. Trade off are significant for two emission indicators out of two, but quite negligible in terms of impacts, besides the case of CO2. For example, growth is reduced by far less than 0.1% in association to a 1% increase of environmental efficiency. Environmental efficiency does not seem a primary cost factor and constraint to growth if compared to other factors affecting firm targets and firm competitiveness. In addition, non-linearity seems to characterise the economic growthenvironmental performance relationship. Signals of inverted U shape appears: this may be a signal that both firm strategies and recent policy efforts are affecting the dynamic relationship between environmental efficiency and economic productivity, turning it from an usual trade off to a possible joint complementary/co-dynamics, where bad environmental performances hamper firm growth and investments in greener technologies may be associated to positive economic performances of firms and sectors.