||An Empirical Study on Pollution Intensity and Physical Capital : the Case of Netherlands
An Empirical Study on Pollution Intensity and Physical Capital : the Case of Netherlands
島本, 憲一Kenichi , Shimamoto
Hirao School of Management review = Hirao School of Management review
45 , 2016-03-30 , 甲南大学マネジメント創造学部HSMR編集委員会
Since the 1990s, as environmentalism gains traction, the Netherlands have actively established an environmental policy. This paper will examine how their environmental policy has affected the pollution intensity. It will conduct a decomposition analysis on the technology effect, industrial composition effect and physical capital intensity effect. The reason for including the physical capital intensity effect is to explore whether a reduction in pollution intensity can be seen from the impact strengthening environmental regulations has on improving the productivity of physical capital. After conducting this decomposition analysis, it was found that for all of the pollutants examined, the physical capital intensity effect mainly affected the trend of the pollutants. In order to confirm this observation, a regression analysis was conducted and the results reflected a similar trend. These results imply that the reduction in pollution intensity was derived by the increase in the productivity of physical capital.