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Product-related Environmental Regulation and Voluntary Environmental Actions: Impacts of RoHS and REACH in Malaysia

Discussion Papers


by T.H. Arimura, H. Iguchi and E. Michida
March 2014


Voluntary environmental actions, such as the adoption of ISO 14001, are gaining increasing attention in developing countries. This study examines the mechanism of ISO 14001 diffusion in a developing economy on the basis of a unique corporate survey of manufacturing sectors in Malaysia. Product-related environmental regulations, such as REACH, are contributing to this diffusion indirectly by promoting quality control standards such as ISO 9001. The importance of foreign direct investment and global value chains for ISO 14001 diffusion is also confirmed.

Keywords: Product-related environmental regulation, REACH, RoHS, ISO 14001, ISO 9001, Malaysia, Global value chain
JEL classification: F18, Q56

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