INVESTIGATING THE RELATIONSHIP BETWEEN COMPANY COMPETITIVENESS AND ENVIRONMENTAL-REGULATION IN EUROPEAN FOOD-PROCESSING - RESULTS OF A MATCHED FIRM COMPARISON

The authors use a method of matched-plant comparisons between food pro cessing firms in Germany, Italy, Northern Ireland, and the Republic of Ireland to investigate the relationship between environmental regulat ion and company competitiveness across the European Union. Comparative competitiveness was indicated by measures of value-added per employee , physical productivity, export share, and employment growth. The cost of water supply (public or well), effluent treatment tin-plant treatm ent and/or sewerage system), and disposal of sludge and packaging were also compared. Total environmental costs in Germany, Italy, and Irela nd were small: usually less than 1% of turnover. Compared with the Iri sh firms, German companies had relatively high environmental costs as well as productivity levels. There was, however, a lack of a clear rel ationship between company competitiveness and the size of regulation c osts: in Ireland and Italy environmental costs were similar but German firms had much higher productivity; compared with German counterparts , Italian firms had lower environmental costs but higher productivity.