Testing Porter's Hypothesis: A Stochastic Frontier Panel Data Analysis of Dutch Horticulture
AbstractWe propose a test of the Porter hypothesis for the Dutch horticulture sector, using a stochastic production frontier analysis allowing for an inclusion of policy variables to account for the effect of environmental policy of firm performance. We find considerable heterogeneity in the way firms react to environmental policy measures. Our estimation results indicate, for example, that a 1997 voluntary agreement covering energy, nutrient and pesticides use enhances technical efficiency of vegetable and plants growers, contrary to specialised flower growers. Specialised flower growers, however, did react to the 1993 multi-year agreement on energy reduction, contrary to vegetable and plant growers. Summarising, our findings are mixed but do not seem to reject the anecdotal evidence mentioned by Porter and Van der Linde (1995b) that Dutch horticulture firms' performance increased due to increased environmental stringency.
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Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark with number 24641.
Date of creation: 2005
Date of revision:
firm performance; environmental stringency; technical efficiency; Environmental Economics and Policy; Production Economics; D24; Q12; Q50;
Find related papers by JEL classification:
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
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- Danilo Camargo Igliori, 2005. "Determinants Of Technical Efficiency In Agriculture And Cattle Ranching: A Spatial Analysis For The Brazilian Amazon," Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33th Brazilian Economics Meeting] 137, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
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