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Abstract This paper examines the relationship between the environmental and economic performance of firms in the European paper manufacturing industry. It initially discusses possible functional relationships between environmental and economic performance rooted in different theoretical frameworks and links these to recent empirical and theoretical analyses of the Porter hypothesis. Following this, it reports the results of an empirical study carried out in the European paper industry. Findings fit better with ‘traditionalist’ reasoning about the relationship between environmental and economic performance, which predicts the relationship to be uniformly negative. In particular they confirm the necessity for a more differentiated view of the Porter hypothesis. Copyright © 2002 John Wiley & Sons, Ltd. and ERP Environment.
Wagner et al. (Mon,) studied this question.
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