Environment-friendly behaviour and competitiveness: A study of pulp and paper industry in india

This paper seeks to examine the relationship between competitiveness and en vironment-friendly behaviour of producers under an economic liberalisation regime. For that purpose, it employs a probit model and estimates the influ ence of the prime movers of industrial growth such as technical change and economies of scale on environmental degradation. The empirical results of t he study of pulp and paper industry, identified as one of the most pollutin g industries in India, indicate that these variables, as the key players of competitiveness improvement, have positive influence on environment-friend ly behaviour. Such findings, therefore, fail to provide support to a view t hat articulates ruthless exploitation of the environment under economic lib eralisation programme.