Technical efficiency under alternative environmental regulatory regimes : the case of Dutch horticulture

A.J. Vlist, van der, C.A.A.M. Withagen, H. Folmer

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22 Citations (Scopus)

Abstract

We consider the performance of small and medium sized enterprises in Dutch horticulture under different environmental policy regimes across time. We address the question whether technical performance differs under these alternative regulatory regimes to test Porter's hypothesis that stricter environmental regulation reduces technical inefficiency. For this purpose, we use a stochastic production frontier framework allowing for inclusion of policy variables to measure the effect of alternative environmental policy regimes on firms' performance. The main result is that stricter environmental policy regimes have indeed reduced technical inefficiencies in Dutch horticulture. The estimation results indicate amongst others that the 1997 agreement on energy, nutrient and pesticides use enhances technical efficiency. Firms under the strict environmental policy regime are found to be more technically efficient than those under a lax regime, thereby supporting the claims by Porter and Van der Linde (Porter, M., Van der Linde, C., 1995. Green and Competitive: Ending the stalemate. Harvard Business Review 73, pp. 120–137) concerning Dutch horticulture.
Original languageEnglish
Pages (from-to)165-173
JournalEcological Economics
Volume63
Issue number1
DOIs
Publication statusPublished - 2007

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technical efficiency
horticulture
environmental policy
small and medium-sized enterprise
pesticide
Horticulture
Regulatory regime
Technical efficiency
Environmental policy
nutrient
energy
firm
Technical inefficiency

Cite this

Vlist, van der, A.J. ; Withagen, C.A.A.M. ; Folmer, H. / Technical efficiency under alternative environmental regulatory regimes : the case of Dutch horticulture. In: Ecological Economics. 2007 ; Vol. 63, No. 1. pp. 165-173.
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Technical efficiency under alternative environmental regulatory regimes : the case of Dutch horticulture. / Vlist, van der, A.J.; Withagen, C.A.A.M.; Folmer, H.

In: Ecological Economics, Vol. 63, No. 1, 2007, p. 165-173.

Research output: Contribution to journalArticleAcademicpeer-review

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