The Porter Hypothesis at 20: Can Environmental Regulation Enhance Innovation and Competitiveness?
Reads0
Chats0
TLDR
The authors provides an overview of the key theoretical and empirical insights into the Porter Hypothesis, draws policy implications from these insights, and sketches out major research themes going forward, as well as highlights the major research topics going forward.Abstract:
Twenty years ago, Harvard Business School economist and strategy professor Michael Porter stood conventional wisdom about the impact of environmental regulation on business on its head by declaring that well-designed regulation could actually enhance competitiveness. The traditional view of environmental regulation held by virtually all economists until that time was that requiring firms to reduce an externality like pollution necessarily restricted their options and thus by definition reduced their profits. After all, if profitable opportunities existed to reduce pollution, profit-maximizing firms would already be taking advantage of those opportunities. Over the past 20 years, much has been written about what has since become known simply as the Porter Hypothesis (PH). Yet even today, we find conflicting evidence and alternative theories that might explain the PH, and oftentimes a misunderstanding of what the PH does and does not say. This paper provides an overview of the key theoretical and empirical insights into the PH to date, draws policy implications from these insights, and sketches out major research themes going forward.read more
Citations
More filters
Journal ArticleDOI
Creativity and Innovation Under Constraints: A Cross-Disciplinary Integrative Review:
TL;DR: In this article, the authors propose a framework for generating creative ideas and turning them into innovations is key for competitive advantage, however, endeavors toward creativity and innovation are bounded by constraints such as rules and regula...
Journal ArticleDOI
Green Technologies and Environmental Productivity: A Cross-sectoral Analysis of Direct and Indirect Effects in Italian Regions
TL;DR: In this article, the effects of environmental innovations on environmental performances, as proxied by the environmental productivity measure, were investigated by exploiting the Regional Accounting Matrix including Environmental Accounts (Regional NAMEA).
Journal ArticleDOI
Environmental pressures and performance: An analysis of the roles of environmental innovation strategy and marketing capability
TL;DR: The authors explored the relationship between environmental regulation and stakeholder pressures and performance considering the mediating role of environmental innovation strategy and the moderated role of marketing capability, and found that marketing capability significantly moderates the relationship of environmental regulation on financial performance.
Journal ArticleDOI
Resource efficient eco-innovations for a circular economy: Evidence from EU firms
TL;DR: In this paper, the authors present new EU evidence regarding the role of environmental policy and green demand drivers to sustain the adoption of resource efficiency-oriented eco-innovations using a large cross-section dataset of EU firms.
Book ChapterDOI
Social, Economic, and Ethical Concepts and Methods
Charles D. Kolstad,K. Urama,John Broome,Annegrete Bruvoll,M. Cariño-Olvera,Don Fullerton,Christian Gollier,W.M. Hanemann,Rashid M. Hassan,Frank Jotzo,Mizan R. Khan,Lukas H. Meyer,Luis Mundaca +12 more
TL;DR: The authors provided a frame-work for viewing and understanding the human perspective on climate change, focusing on ethics and economics; and to define climate change from a social perspective. But they did not consider the economic perspective.
References
More filters
Journal ArticleDOI
Toward a New Conception of the Environment-Competitiveness Relationship
TL;DR: In this article, the authors argue that the trade-off between environmental regulation and competitiveness unnecessarily raises costs and slows down environmental progress, and that instead of simply adding to cost, properly crafted environmental standards can trigger innovation offsets, allowing companies to improve their resource productivity.
Green and Competitive: Ending the Stalemate
TL;DR: The Dutch flower industry has responded to its environmental problems by developing a closed-loop system to reduce the risk of infestation, reducing the need for fertilizers and pesticides, and improving product quality as mentioned in this paper.
Journal ArticleDOI
Multilateral Productivity Comparisons When Some Outputs are Undesirable: A Nonparametric Approach
TL;DR: Multilateral productivity comparisons of firms producing multiple outputs, some of which are undesirable, are obtained by making two modifications to the standard Farrell approach to efficiency measurement.
Posted Content
Trade, Growth and the Environment
TL;DR: For the last ten years environmentalists and the trade policy community have engaged in a heated debate over the environmental consequences of liberalized trade as mentioned in this paper, which has been hampered by the lack of a common language and also suffered from little recourse to economic theory and empirical evidence.
Related Papers (5)
Toward a New Conception of the Environment-Competitiveness Relationship
Environmental Regulation and the Competitiveness of U.S. Manufacturing: What Does the Evidence Tell Us?
Adam B. Jaffe,Steven R. Peterson +1 more