What is the environmental performance of firms overseas?: an empirical investigation of the global gold mining industry

Gary Koop, Lise Tole

Research output: Contribution to journalArticle

12 Citations (Scopus)

Abstract

Using a large plant level data set, this paper carries out an econometric analysis of the environmental performance of multinational firms in the gold mining industry worldwide. The aim of the analysis is to determine if, by looking at the actual environmental performance of firms (as opposed to inferring such behavior from location decisions), we can shed any light on important questions in the literature on firm location decisions: Do pollution havens exist in the gold mining industry? Do foreign controlled gold mines perform environmentally worse or better than their domestic counterparts? We develop different ways of measuring environmental performance within the context of a Bayesian stochastic production frontier approach. In particular, we derive different ways of measuring technical and environmental efficiency. When we implement these methods in our empirical work, we find that results are robust across different models and ways of measuring efficiency. We find that gold mines exhibit a wide range of environmental efficiencies; some are clearly more efficient than others. However, and most importantly for our questions, we find that this variation in efficiencies cannot be systematically related to mine characteristics such as whether they are foreign or domestically controlled or whether they are located in developed versus developing countries.
LanguageEnglish
Pages129-143
Number of pages15
JournalJournal of Productivity Analysis
Volume30
Issue number2
DOIs
Publication statusPublished - Oct 2008

Fingerprint

gold
overseas
firm
efficiency
industry
performance
econometrics
developing country
Empirical investigation
Gold mining
Mining industry
Environmental performance
Environmental efficiency
Location decision

Keywords

  • Bayesian stochastic frontier analysis
  • efficiency
  • environmental regulations
  • plant performance
  • pollution havens
  • regulatory chill
  • gold mining
  • econometrics

Cite this

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What is the environmental performance of firms overseas? an empirical investigation of the global gold mining industry. / Koop, Gary; Tole, Lise.

In: Journal of Productivity Analysis, Vol. 30, No. 2, 10.2008, p. 129-143.

Research output: Contribution to journalArticle

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