1. ¹Department of Economics, Portland State University, PO Box 751, Portland, OR 97207-0751, USA. E-mail: bluffsto@pdx.edu
2. ²Department of Economics, University of Gothenburg, PO Box 640, Gothenburg 40530, Sweden. E-mail: thomas.sterner@economics.gu.se

Abstract

The paper analyses the adoption of various environmental management systems (EMSs) by industrial firms in Central and Eastern Europe approximately 8 years after economic transitions began. Of special interest are the effects of privatisation, export orientation, public pressure and environmental regulation on adoption. Using logit regression models, it is found that several transition and environmental regulatory factors spur EMS adoption. Better environmental regulatory systems and anticipation of more stringent future regulation appear to encourage EMS. Public information regarding firms' pollution emissions, foreign direct investment and export dependency also appear to be important, but there is no evidence that firm ownership is related to EMS adoption.