Does it pay for firms to adopt environmental protection devices? An empirical examination in Cameroon

The decision to adopt environmental protection policies within companies is faced with the fear of negative repercussions on performance. The aim of this paper is to analyse the effect of adopting environmental protection measures on the performance of VSEs in the tertiary sector in Cameroon. The use of linear models and matching methods such as Propensity Score Matching (PSM) and Multivariate Distance Matching (MDM) reveals a positive influence on performance. However, not all environmental protection measures produce such an effect. When the channel of influence is checked, structural equation models of the path analysis type show that costs are a non-negligible transmission channel. However, a difference in the mechanism of action depending on the device adopted is found. An analysis of the heterogeneity of the effect of adopting environmental protection measures shows that the effect is not identical according to the number of years in business and the size of the company. The results of building a region-sectoral instrument applied to the IV method attest to the robustness of our results. The study encourages companies to behave in an environmentally friendly way and confirms the need for public authorities to support them without forcing them to do so. • Companies benefit from adopting certain environmental protection devices. • The cost channel proves to be a significant influencing mechanism. • There is a reduction in the costs associated with environmental proactivity. • There is heterogeneity in the impact of proactive environmental protection strategies. • Mechanisms of action differ according to the type of environmental devices adopted.