Is ISO 14001 a gateway to more advanced voluntary action? The case of green supply chain management

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136 Citations (Scopus)

Abstract

Using Japanese facility-level data, we estimate the effects of ISO 14001 certification on the promotion of more advanced practices, namely green supply chain management (GSCM). Our results show that ISO 14001 promotes GSCM practices. Facilities with environmental management systems (EMS) certified to ISO 14001 are 40% more likely to assess their suppliers' environmental performance and 50% more likely to require that their suppliers undertake specific environmental practices. Further, government programs that encourage voluntary EMS adoption indirectly promote GSCM practices. These programs increase the probabilities that facilities will assess their suppliers' environmental performance and require suppliers to undertake specific environmental practices by 7% and 8%, respectively. Combined, these findings suggest that there may be significant but previously unnoticed spillover effects of ISO 14001 and government promotion of voluntary action.

Original languageEnglish
Pages (from-to)170-182
Number of pages13
JournalJournal of Environmental Economics and Management
Volume61
Issue number2
DOIs
Publication statusPublished - 2011 Mar
Externally publishedYes

Fingerprint

environmental management
management practice
spillover effect
certification
supply chain management
Suppliers
Voluntary action
Green supply chain management
environmental performance
programme
Environmental practices
Management practices
Environmental management system
Government
Environmental performance
effect
Spillover effects
Certification

Keywords

  • Discrete choice model
  • Endogeneity
  • Environmental impacts
  • Environmental management systems
  • Government assistance programs
  • Green supply chain management
  • ISO 14001
  • Positive spillover
  • Voluntary actions

ASJC Scopus subject areas

  • Economics and Econometrics
  • Management, Monitoring, Policy and Law

Cite this

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abstract = "Using Japanese facility-level data, we estimate the effects of ISO 14001 certification on the promotion of more advanced practices, namely green supply chain management (GSCM). Our results show that ISO 14001 promotes GSCM practices. Facilities with environmental management systems (EMS) certified to ISO 14001 are 40{\%} more likely to assess their suppliers' environmental performance and 50{\%} more likely to require that their suppliers undertake specific environmental practices. Further, government programs that encourage voluntary EMS adoption indirectly promote GSCM practices. These programs increase the probabilities that facilities will assess their suppliers' environmental performance and require suppliers to undertake specific environmental practices by 7{\%} and 8{\%}, respectively. Combined, these findings suggest that there may be significant but previously unnoticed spillover effects of ISO 14001 and government promotion of voluntary action.",
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