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Competitiveness and environmental policies for agriculture: testing the Porter hypothesis

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  • Shunsuke Managi

Abstract

Porter hypothesis suggests tougher environmental regulations could spur technological growth, leading to an increase in productivity of market outputs, simultaneously providing greater environmental protection. This study tests the Porter hypothesis in US agriculture using state level data from 1973 through 1996. Luenberger productivity indexes, which are dual to the profit function and do not require the choice of input-output orientation, are measured with and without environmental factors. This study also tests the direction of causality between technological progress and stringent environmental regulation, and find support for a recast version of the Porter hypothesis, however, reject a standard version of the Porter hypothesis.

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Bibliographic Info

Article provided by Inderscience Enterprises Ltd in its journal Int. J. of Agricultural Resources, Governance and Ecology.

Volume (Year): 3 (2004)
Issue (Month): 3/4 ()
Pages: 310-324

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Handle: RePEc:ids:ijarge:v:3:y:2004:i:3/4:p:310-324

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Web page: http://www.inderscience.com/browse/index.php?journalID=1

Related research

Keywords: Luenberger productivity; technological change; Porter hypothesis; agricultural risks; environmental regulations; technological growth; United States; USA; agriculture; environmental policy; environmental protection; industrial performance.;

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Cited by:
  1. Ambec, Stefan & Cohen, Mark & Elgie, Stewart & Lanoie, Paul, 2010. "The Porter Hypothesis at 20: Can Environmental Regulation Enhance Innovation and Competitiveness?," TSE Working Papers 10-215, Toulouse School of Economics (TSE).
  2. Ben Kriechel & Thomas Ziesemer, 2009. "The environmental Porter hypothesis: theory, evidence, and a model of timing of adoption," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 18(3), pages 267-294.
  3. Shunsuke Managi & Pradyot Ranjan Jena, 2007. "Productivity and Environment in India," Economics Bulletin, AccessEcon, vol. 17(1), pages 1-14.

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