Environmental stakeholders, environmental strategies, and productivity of Tunisian manufacturing industries

Abstract

The main objective of this study was to analyze the impact of environmental strategies on productivity in industries that face different environmental stakeholders' pressures using the data of 26 Tunisian manufacturing industries over the period 1994–2008. We first measured the evolution of total factor productivity (TFP) as well as its components using the output-oriented Malmquist productivity index method. Our findings revealed that TFP has witnessed an average increase of 1.5% per year during the above mentioned period. This growth can be explained by technological progress (1.6%) and a loss efficiency (0.1%). Second, we assessed the effect of the environmental strategies on the TFP growth using a panel data model. Our results showed that the pollution abatement activities have two major effects. On the one hand, they negatively affected productivity. On the other hand, they could improve and develop the economic activity.

Keywords:

• total factor productivity
• Tunisian manufacturing industry
• Porter hypothesis

Notes

1. TND: Tunisian dinar.

2. For example, the annual degradation costs are estimated to be about 4.8% of GNP in Egypt, 3.7% in Morocco, 3.6% in Algeria, 3.5% in Syria, 3.4% in Lebanon, 2.8% in Jordan, 5.4% in India, and 3.3% in Mexico.

3. These technologies are also called preventive or integrated.

4. For the choice of these variables, we followed Dufour et al. (1995) and Lanoie et al. (2001).

5. To measure the effect of the stringency of the environmental regulation on the productivity of the most exposed industries to the international competition, we should add coefficients of IC and EIS variables.

6. To measure the effect of pressure exerted by managers on productivity of the most exposed industries to the international competition, we should add coefficients of PAI and IC variables.