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Environmental policy stringency and firm efficiency in developing countries

Bibliographic Data

ID14867100
AuthorsBao We Wal Bambe (0000-0002-3368-7967, Université d'Orléans, corresponding author), Jean-Louis Combes, Jean‐louis Combes (0000-0002-2636-3155, Université d'Orléans), Ben-Vieira Kouassi (Université d'Orléans), Sonia Schwartz (0000-0002-1528-200X, Université d'Orléans)
Year2026
Volume66
Issue3
Pages1163-1182
Publication date2026-03-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueSmall Business Economics (JOURNAL)
Journal identifiersISSN: 0921-898X • E-ISSN: 1573-0913
PublisherSpringer Science and Business Media LLC (PUBLISHER)
DOI10.1007/s11187-025-01128-w
OpenAlexW4416536173
LanguageEN
Citations received1
References cited91

This article examines the impact of environmental stringency on firm efficiency, using a large cross-country dataset of 68 developing countries from 2006–2020. We combine the newly published Environmental Performance Index (EPI) as an indicator of the stringency of environmental regulations with firm data from the World Bank Enterprise Surveys (WBES). Our results indicate that stricter environmental policies significantly increase firm efficiency, and the effect is robust. Moreover, we find that the intensity of environmental stringency matters, and that firm size, firm pollution intensity, and institutional quality also influence the relationship between environmental stringency and efficiency. Thus, our results support the Porter hypothesis in the case of developing countries

Developing country · Entrepreneurship · Environmental policy · Environmental pollution · Environmental quality · Index (typography · Quality (philosophy · Corporate Social Responsibility Reporting · Energy, Environment, Economic Growth · Environmental Sustainability in Business

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Unique citing works1
Citations per year1
Citation span2026 - 2026 (1)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 1

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