Study on the Influence of Environmental Management Policy of Governments on International Competitiveness of Business

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This research was started for the purpose of verifying whether environmental regulation has affected the international competitiveness. First, it estimates pollution abatement investment and its operational expense of Japanese enterprises. However, such data of individual enterprise are not open to the public, and were not able to be obtained. Therefore, only macroscopic data collected by the Ministry of International Trade and Industry, the Japan Environmental Cooperation, etc. was used for analysis. The average value ratio of the investment for end of pipe technology to the whole investment at the large industries was estimated at 1.66% (4.37%for small and miedium industries). Annual operational expense of pollution abatement equipment at large industries was equivalent to only less than 0.1% (0.38-1.71% for small and medium industries). Therefore, it was considered that competitiveness is not very much affected by burden of pollution abatement investment, at least at large industries. Rather, labor cost, social economical situation, and accessibility to the market of the area are considered to affect competitiveness of industries. Then, it examined measures to promote eco-business which contribute environmental conservation in developing countries. A questionnaire survey was created to examine the main issues confronting Japanese companies engaging in and promoting environmental activities in developing countries. The questionnaires were mailed in June and July of 1998 to 491 companies and organizations, hereinafter referred to simply as 'the companies, ' that are members of the Japan Federation of Economic Organizations, a confederation of Japanese large companies. Of the total companies, 143 (29.1%) replied. The questionnaire's inquiries were related to global environmental preservation activities of the companies : ones done on a volunteer basis, environmental businesses, and considerations to environmental issues in relation to overseas operations.