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Environmental Regulation and Innovation: A Panel Data Study
Abstract
In a 1991 essay in Scientific American, Michael Porter suggested that environmental regulation may have a positive effect on the performance of domestic firms relative to their foreign competitors by stimulating domestic innovation. We examine the stylized facts regarding environmental expenditures and innovation in a panel of manufacturing industries. We find that lagged environmental compliance expenditures have a significant positive effect on R&D expenditures when we control for unobserved industry-specific effects. We find little evidence, however, that industries' inventive output (as measured by successful patent applications) is related to compliance costs.
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Cites
Porter, M. E. (1991) · Scientific American · doi:10.1038/scientificamerican0491-168 · Cited by 1,540
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Cited by
Redefining innovation — eco-innovation research and the contribution from ecological economics
Rennings, K. (2000) · Ecological Economics · doi:10.1016/s0921-8009(99)00112-3 · Cited by 3,226
Business models for sustainable innovation: state-of-the-art and steps towards a research agenda
Boons, F., & Lüdeke-Freund, F. (2013) · Journal of Cleaner Production · doi:10.1016/j.jclepro.2012.07.007 · Cited by 2,469
The Porter Hypothesis at 20: Can Environmental Regulation Enhance Innovation and Competitiveness?
Ambec, S., Cohen, M. A., Elgie, S., & Lanoie, P. (2013) · Review of Environmental Economics and Policy · doi:10.1093/reep/res016 · Cited by 1,928
Does It Pay to Be Green? A Systematic Overview
Stefan, A., & Paul, L. (2008) · Academy of Management Perspectives · doi:10.5465/amp.2008.35590353 · Cited by 1,759
Environmental Policy and Directed Technological Change: Evidence from the European Carbon Market
Calel, R., & Dechezleprêtre, A. (2016) · Review of Economics and Statistics · doi:10.1162/rest_a_00470 · Cited by 1,147
Metadata
- Authors
- Jaffe, A. B., & Palmer, K.
- Venue
- Review of Economics and Statistics
- Publisher
- MIT Press - Journals
- Published
- 1997-11
- Volume
- 79
- Issue
- 4
- Pages
- 610-619
- ISSN
- 0034-6535 (ISSN-L)
- 1530-9142
- OpenAlex
- W3093975245
- Cited by
- 2,181
- References
- 1
- FWCI
- 26.80
- Type
- journal article
- Language
- en
- Open access
- closed
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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
