Does Peer Adoption Increase the Diffusion of Pollution Prevention Practices?

Voluntary adoption of pollution prevention (P2) practices has been used to reduce toxic emissions in the US. Spillovers among facilities owned by same firm likely play an important role diffusion P2 practices. This article estimates intrafirm spillover effects adoption. Using instrumental variables methods applied facility panel data from Toxics Release Inventory, we find that a facility’s own increases response greater firm. Intrafirm spillovers are stronger small firms and with higher degree sibling homophily.