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

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.

Keywords:

• environmental regulation
• command and control
• voluntary instruments
• competitive performance
• building and construction sector

Notes

1. See http://www.oecd.org/document/37/0,3343,en_2649_34333_2388581_1_1_1_1,00.html for further details.

2. Directive 2002/91/EC of the European Parliament and of the Council of 16 December 2002 on the energy performance of buildings.