Inderscience Publishers

Environmental regulation and corporate strategies in the fertiliser industry

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A major restructuring process is taking place in the international fertiliser industry driven by the introduction of stricter environmental regulation in advanced countries and the expansion of local production capabilities in developing countries. The paper will analyse patterns of corporate adjustment in the fertiliser industry. The emphasis is on the unique characteristics of the fertiliser industry as the producer of a final product and a supplier of intermediate inputs to agriculture. These producer-user linkages will be examined in the context of four case studies, i.e. the European Union, China, Turkey and Morocco. It will be argued that the fertiliser industry has incorporated the specific characteristics of these linkages in its adjustment processes in both developed and developing countries - but in very different ways. This analysis suggests significant implications for the design of policies, which could facilitate the introduction of cleaner production techniques in the fertiliser industry and the adoption of environmental friendly production techniques in agriculture.

Keywords: corporate strategy, environmental regulation, fertiliser industry

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