Pollution, Production, and Sectoral Differences in a Transition Economy

This paper analyses corporate environmental performance, as measured by air pollutant emissions, in the transition economy of the Czech Republic. In particular, this paper assesses whether firms face economies and/or diseconomies of scale with respect to pollution control by evaluating the effects of production on emission levels. As important, this paper assesses whether certain sectors face different scales of production – economy or diseconomy – than other sectors. To achieve these objectives, this paper uses an unbalanced panel of Czech firms for the years 1993–1998. Comparative Economic Studies (2006) 48, 662–681. doi:10.1057/palgrave.ces.8100190