Determinants of cleaner technology investments in the U.S. bleached kraft pulp industry

Leigh J. Maynard, James S. Shortle

Research output: Contribution to journalArticle

21 Scopus citations

Abstract

This study identifies adoption determinants of selected cleaner technologies used in bleached kraft pulp production, with emphasis on incentives for voluntary environmental management. A double-hurdle model consistent with the theory of irreversible investment under uncertainty outperformed a probit specification, indicating the importance of option values as an adoption deterrent. Measures of public pressure for environmental performance, such as Toxics Release Inventory data and environmental group membership, were positively associated with cleaner technology adoption. The results suggest a role for environmental policy designs that accommodate the industry's private incentives while minimizing the value of waiting to adopt cleaner technologies. (JEL Q25).

Original languageEnglish (US)
Pages (from-to)561-576
Number of pages16
JournalLand Economics
Volume77
Issue number4
DOIs
StatePublished - Jan 1 2001

All Science Journal Classification (ASJC) codes

  • Environmental Science (miscellaneous)
  • Economics and Econometrics

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