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Abatement investments and green goodwill

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Abstract:

This paper develops and estimates a dynamic model that links profits to green goodwill. Assuming that abatement investments generate green goodwill, and using data from the Swedish pulp industry, we are able to test the effects of green goodwill on firm level output price and profits. The results suggests that Swedish pulp plant output prices and profits may be positively related to changes in green goodwill. Furthermore, no evidence is found to support the existence of adjustment costs due to abatement investments.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036840310001628026

Affiliations: Department of Forest Economics, SLU, S-901 83 Umeå, Sweden

Publication date: December 15, 2003

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