Intra-firm diffusion of pollution prevention technology: the role of organizational structure

This paper empirically examines the extent to which organization characteristics promote the diffusion of pollution prevention technologies within a firm (parent company). We use panel data on more than 5000 facilities reporting to the Toxics Release Inventory over the period of 1991 to 2011 to examine the number of pollution prevention technologies adopted by a facility with respect to its size, previous experience in adoption, its distances to its sibling facilities and firm’s headquarter, and regional density. We use a two-part hurdle model to estimate the likelihood of adoption and the rate of adoption, while controlling for public and regulatory pressures that may have affected the adoption of pollution prevention technologies. We find that a facility that was located in the same city with its firm’s headquarter were more likely to adopt pollution prevention technologies. Past experience in adoption of pollution prevention technology and firm’s knowledge stock on pollution prevention technology increased both the likelihood and rate of adoption.