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JOURNAL OF MANAGEMENT POLICY AND PRACTICE
The Evolution of Economies of Scale Regarding Pollution Control:
Cross-Sectional Evidence from a Transition Economy
Author(s): Dietrich Earnhart, Lubomir Lizal
Citation: Dietrich Earnhart, Lubomir Lizal, (2011) "The Evolution of Economies of Scale Regarding Pollution Control: Cross-Sectional Evidence from a Transition Economy," Journal of Management Policy and Practice, Vol. 12, Iss. 2, pp.62 - 83
Article Type: Research paper
Publisher: North American Business Press
Abstract:
This paper assesses whether firms face economies and/or diseconomies of scale with respect to air
pollution control by evaluating the effects of production on firm-level air emission levels. To achieve this
objective, this paper uses an unbalanced panel of Czech firms during the country’s transitional period of
1993 to 1998. By examining each year separately, the analysis permits firms’ abilities to control air
pollution to vary over time. In general, results indicate that, as production rises, Czech firms first face
diseconomies of scale but later enjoy economies of scale.
