Premium
Performance environnementale et équilibre.
Author(s) -
Bréchet Thierry,
Michel Philippe
Publication year - 2007
Publication title -
canadian journal of economics/revue canadienne d'économique
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 69
eISSN - 1540-5982
pISSN - 0008-4085
DOI - 10.1111/j.1365-2966.2007.00443.x
Subject(s) - profitability index , constraint (computer aided design) , outcome (game theory) , porter hypothesis , industrial organization , economics , business , econometrics , microeconomics , environmental economics , environmental policy , mathematics , geometry , finance
. In this paper we show why firms' or industries' rankings in terms of environmental performance depend not only on the technology but also on market equilibrium. Between two industries committed to the same environmental constraint, the more eco‐efficient is the one with the higher output level. By comparing industries and firms, we show that the rankings are not robust, for they are affected by market outcome. The role of eco‐efficiency in firms' profitability in equilibrium is also scrutinized. All this shows that the usual eco‐efficiency indicators are inadequate. To tackle this problem, we propose a sound indicator.