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When do Finns Benefit from Environmental Regulations? A Simple Microeconomic Approach to the Porter Controversy

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  • Dario Bonato
  • Armin Schmutzler

Abstract

Michael Porter and others have recently argued that suitable environmental regulations are likely to induce cost-reducing innovations. We analyze under which conditions such arguments might be consistent with microeconomic analysis, and under which additional conditions the firms' benefits might exceed the costs. It turns out that this requires fairly specific conditions.

Suggested Citation

  • Dario Bonato & Armin Schmutzler, 2000. "When do Finns Benefit from Environmental Regulations? A Simple Microeconomic Approach to the Porter Controversy," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 136(IV), pages 513-530, December.
    • Handle: RePEc:ses:arsjes:2000-iv-2
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    Cited by:

    1. Jianqiao LIU & Gamal ATALLAH, 2009. "Tradable Permits Under Environmental and Cost-reducing R&D," EcoMod2009 21500059, EcoMod.
    2. Horbach, Jens, 2006. "Determinants of Environmental Innovation - New Evidence from German Panel Data Sources," Climate Change Modelling and Policy Working Papers 12029, Fondazione Eni Enrico Mattei (FEEM).
    3. Jens Horbach, 2006. "Determinants of Environmental Innovation – New Evidence from German Panel Data Sources," Working Papers 2006.13, Fondazione Eni Enrico Mattei.
    4. Sterner, Thomas & Slunge, Daniel, 2001. "Implementation of Policy Instruments for Chlorinated Solvents: A Comparison of Design Standards, Bans, and Taxes to Phase Out Trichloroethylene," RFF Working Paper Series dp-01-32, Resources for the Future.
    5. Iwata, Hiroki, 2016. "Environmental Regulation and Choice of Innovation in Oligopoly," MPRA Paper 70280, University Library of Munich, Germany.
    6. Horbach, Jens, 2008. "Determinants of environmental innovation--New evidence from German panel data sources," Research Policy, Elsevier, vol. 37(1), pages 163-173, February.

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