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Abstract: This research presents an overview of where the gaps in the literature exist in relation to the link between environmental regulation and proactive environmental management and competitiveness, and incorporates them in a whole model. Different papers have highlighted only partial aspects of these relationships. Specifically, this research evaluates the relationship between managerial perception and the different styles of environmental regulations – command-and-control versus voluntary norms – the mediator role of environmental management in the link between environmental regulations and competitiveness, the effect of competitiveness on financial performance, and the two-way relationship between proactive environmental management and financial performance. Finally, this paper uses statistical evidence to test and estimate causal relationships through a structural equation modelling of 208 firms affected by IPPC law in Spain. There is a lack of systematic statistical evidence on this topic in the literature, which mainly focuses on case studies. The results show that when environmental regulation stems from command-and-control legislation its influence on managerial perception and proactive environmental management is not significant. However, when environmental regulation stems from voluntary norms, its effects are positive. Moreover, investment in proactive environmental management contributes to increasing the competitiveness of the firm. Cost and differentiation competitive advantage have a positive impact on financial performance. Finally, the link between proactive environmental management and financial performance may follow different paths: (1) neither direct nor single, because it can depend on competitive advantage, and (2) direct, because there is a significant two-way relationship between these variables (proactive environmental management influences financial performance and financial performance influences proactive environmental management). [Copyright &y& Elsevier]

Abstract: The EMAS Regulation (Reg 761/01 EC) is EU scheme implemented by the European Commission since 1993 and it is for the implementation of an Environmental Management System (EMS) by any organization. The EMS was originally proposed by the European Commission and by the ISO as the frontrunner of a series of policy tools that enable companies to simultaneously pursue environmental objectives and competitive targets in a synergetic way. Based on the unique dataset of the EVER project, this paper investigates whether or not an EMS implemented within the EMAS Regulation has any effect on firm performance both from an environmental and a competitive point of view. Our econometric analysis shows the positive impact of a well-designed environmental management system on environmental performance and, as a consequence, on technical and organizational innovations. Effects on other competitive variables such as market performance, resource productivity and intangible assets are not strongly supported. [Copyright &y& Elsevier]