Environmental performance and spillover effects on productivity: evidence from horticultural firms.

ABSTRACT

This study investigates the effect of environmental investment and related spillover effects on productivity in the agricultural sector by using a panel data of horticultural firms in Andalusia (Southern Spain). The results indicate a positive relationship between firm investment in environmental practices and productivity improvement, also showing the presence of positive environmental spillovers. In a second-stage of analysis, the incidence of environmental factors in firm specific individual technical efficiency is estimated. This analysis also shows the link between environmental knowledge diffusion and horticultural firms' performance.