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The Porter Hypothesis, Property Rights, And Innovation Offsets: The Case Of Southwest Michigan Pork Producers

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  • Srivastava, Lorie
  • Batie, Sandra S.
  • Norris, Patricia E.

Abstract

The Porter Hypothesis relates the effects of environmental regulation on (a) technological innovation and (b) economic performance. Specifically, it asserts that innovation offsets can occur. These are a type of technological change that will "partially or more than fully offset the costs of complying with environmental regulation" (Porter and van der Linde, 1995, p. 98). The hypothesis has been highly debated, in part, because nomenclature has been careless. Also, the role of property rights in defining innovation offsets has been neglected. If the Porter Hypothesis has validity in agriculture, its policy implications are important. Recent changes in agro-environmental legislation provides an opportunity to more thoroughly investigate the hypothesis and its implications.

Suggested Citation

  • Srivastava, Lorie & Batie, Sandra S. & Norris, Patricia E., 1999. "The Porter Hypothesis, Property Rights, And Innovation Offsets: The Case Of Southwest Michigan Pork Producers," 1999 Annual meeting, August 8-11, Nashville, TN 21515, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea99:21515
    DOI: 10.22004/ag.econ.21515
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    1. Karen Palmer & Wallace E. Oates & Paul R. Portney & Karen Palmer & Wallace E. Oates & Paul R. Portney, 2004. "Tightening Environmental Standards: The Benefit-Cost or the No-Cost Paradigm?," Chapters, in: Environmental Policy and Fiscal Federalism, chapter 3, pages 53-66, Edward Elgar Publishing.
    2. Francesco Ferrante, 1998. "Induced technical change, adjustment costs and environmental policy modelling," Applied Economics, Taylor & Francis Journals, vol. 30(5), pages 649-665.
    3. Jean-Paul Chavas & Michael Aliber & Thomas L. Cox, 2000. "An Analysis Of The Source And Nature Of Technical Change: The Case Of U.S. Agriculture," The Review of Economics and Statistics, MIT Press, vol. 79(3), pages 482-492, August.
    4. Adam B. Jaffe & Karen Palmer, 1997. "Environmental Regulation And Innovation: A Panel Data Study," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 610-619, November.
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