Abstract
In an attempt to overcome barriers to trade posed by numerous and: often contradictory national-level environmetral requirements, the international Organization Tor Standardization (ISO) has created a voluntary set of uniform envirnmental management system guidelines for firms, formally known as ISO 14001. Firms may decide 10 implement an ISO environmental management system (EMS) and become third-party certified in order to improve their environmental management and to increase their marketability. This study examines the relative costs, benefits, and motivations for ISO certification for China compared to other economically developing and developed countries. These comparisons allow to better understand the ways in which the unique economic and potilical conditions within China affect the incentives for Chinese firms to join in vuluntary self-regulatory measures. Survey results indicate that ISO 14001 cerlified firms in China are experiencing benefits equal to or greater than their peers in other countries. Benefits to environmental management appear to be significant and they generally outweigh (he costs of implementation and certification. However, as with most voluntary, the potential for abuse remains. Therefore regulators and policy makers are advised not to grant regulatory relief or inspections except on a case-by-case basis.
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