ABSTRACT
Pollution Release and Transfer Register (PRTR) system focused on the effects of the US Toxics Release Inventory (TRI), and particularly the relationship between a firm's environmental performance and its financial performance. The TRI is a publicly available US Environmental Protection Agency (US EPA) database that contains information on toxic chemical releases and waste management activities, is reported annually by certain industries and federal facilities. directional distance function (DDF) measure the Luenberger productivity indicator to estimate ESP. DDF evaluates productive efficiency using a nonparametric production function. Luenberger-type productivity is considered to be a more general measure than the widely used Malmquist Index. Productivity improvements play an important role in reducing pollution and improving standards of living. The financial data on the Japanese firms were provided by the Nikkei financial database, and chemical substances data were from the PRTR database from the Ministry of Economy, Trade and Industry (METI). The JCIA(Japanese Chemical Industry Association)consists of 180 chemical industrial firms and 75 business associations.
