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Project title

Environmental technology, dynamic environmental capabilities and competitiveness

Primary Funding Agency

Environmental Protection Agency

Co-Funding Organisation(s)

n/a

Lead Organisation

National University of Ireland Galway (NUIG)

Lead Applicant

Rachel Hilliard

Project Abstract

The project was funded during 2005-2008 through the Centre for Innovation and Structural Change (CISC) at National University of Ireland Galway. The goal was to develop new analytical tools for modelling the environmental and economic performance of companies in Irish industry; test those tools using statistical survey and case study analysis of firms across industry sectors; and infer policy measures with potential for encouraging sustainable business development. A key focus was whether organisational i'static and dynamic environmental capabilitiesi could help explain differential companies adaptation to licensing. Firms studied are those covered by EPAis Integrated Pollution Control (IPC) licensing programme beginning in 1996 near its inception and through its end in 2004. Specific goals included:To develop an integrated database on environmental performance management and technology and financial performance among firms across industrial sectors. Sectors were chosen for number of facilities preponderance of firms with their own accounts lack of intra-firm trade that could bias financial data and range of environmental aspects and approaches: metal fabricating paint and ink manufacturing and wood products and preservation. Financial data are from the Companies Records Office; environmental data come primarily from license applications Annual Environmental Reports and correspondence on file with EPA.To develop indicators of: Environmental performance. Three sets were created: an index of i'key emissionsi frequently reported pollutants important in each sector; for waste total tonnes percent hazardous and percent disposed; and in resource use electricity fuel water and a composite indicator. Mass data is normalised by employment for comparability over time and companies and the indicators are expressed as ratios with sector averages to permit cross-sector comparability. Environmental management. Hundreds of projects were scored and used to create annual measures of procedural planning and training related management practice and a composite. Environmental technology. Hundreds more projects were used to create annual technology indicators categorised both by pollution prevention approach and stage in the production process. Each project is scored according to how widespread its use in the facility and sector-specific criteria on how clean the technology with comparability ensured by uniform approach and stage categories for all three sectors.To develop indicators of organisational capabilities that may complement the effect of management and technology practices on environmental performance. An indicator of i'static capabilityi was developed based on i'learning by doingi research as a function of experience with particular kinds of practice measured by number of projects and elapsed time. i'Dynamic capabilityi was operationalized using activities involving information search and processing internally within the firm and externally from outside sources. EPA data is supplemented with responses to a mailed-out survey.To develop statistical models of the relationships between environmental performance economic performance environmental technology and management practices and organisational capabilities. Nonparametric partial correlation is used appropriate to a small sample with many extreme values and non-normal distributions and to control for interrelationships among variables. Higher levels of environmental practice are associated with reduced key emissions. For waste and resource use reverse causality characterises the relationship with technology practice: heavier impacts stimulated greater practice. Static capability generally plays a mediating role in technology and shows the importance of experience gained prior to IPC licensing; little support for the role of dynamic capability is found. Finally economic performance measured as operating efficiency is enhanced by environmental technology practice. There is little evidence that environmental effort impedes economic results.To develop a more nuanced understanding through qualitative research of the processes and dynamics at work within the broad statistical contours. Case interviews reveal the importance of higher order management practice including integrative processes of planning wide searches for information cross-functional problem solving and team-based activity. Doing this internally rather than via consultants facilitates more change and combining these organisational activities with technology upgrades is also important. Several expressed the view that EPA could be more helpful with a shift toward advice and assistance rather than (in their view) simply enforcement.To develop recommendations on effective policy interventions in the regulation of the environmental impact of industrial activity. The efficacy of the IPC licensing system is supported by downward trends in the environmental impact indicators over the time period studied. That and the role of early experience in generating accumulation of capabilities suggest the importance of getting facilities into the programme as quickly as possible. Effectiveness could be enhanced by greater standardisation of monitoring and reporting requirements across similar facilities lessening the burden on EPA staff increasing perceived fairness among regulated companies and facilitating outcomes assessment. Finally developing EPAis role in providing expert assistance to licensees would strengthen the dissemination of best practices while improving relations with key stakeholders.

Grant Approved

�193,647.68

Research Hub

Sustainability

Research Theme

Socio-Economic Considerations

Start Date

01/06/2005

Initial Projected Completion Date

01/06/2006