IDEAS home Printed from https://ideas.repec.org/p/ags/pugtwp/331005.html
   My bibliography  Save this paper

Environmental Policy and Technological Innovation: Evidence from Taiwan Manufacturing Industries

Author

Listed:
  • Tsai, Diana

Abstract

Michael Porter suggested that the traditional trade-off between environmental regulation and competitiveness may have overestimated environmental compliance costs, neglected innovation offsets, and disregarded the affected industry's initial competitiveness. We examine the stylized facts regarding environmental abatement investments and innovation in various industries. This paper examines the role of market innovation and the incurred necessary adjustments in explaining the apparent contradiction between markets and the environment. It argues that market innovation can serve as a powerful tool of environmental policy operating together with a competitive market environment. To capture the market innovation and the incurred adjustments for enterprises in complying with the environmental standard requires a model with dynamic adjustment features. This paper applies an empirical industry dynamic model to explicitly incorporate associated adjustments in analyzing the efficiency of the abatement investment by industry. By investigating abatement investments in various industries, we analyze the innovation and adjustment effects of environmental policy. We apply the empirical industry dynamic model to Taiwan manufacturing industries and investigate how well the double-focus of industry efficiency and environmental perpetual development has been developed in the process of industrialization. The Taiwan manufacturing industries were chosen since it has been characterized by increasing innovation and investment in R&D, especially the rapid innovation in electronics, computers, materials, and processes which had marked as the source of the substantial growth before Asia financial crisis. The industries with higher innovation spillover effects and lower adjustment effects are identified to effectively enhance optimal policy in aiming at both economic efficiency and environmental perpetual development for Taiwan's balanced growth.

Suggested Citation

  • Tsai, Diana, 2002. "Environmental Policy and Technological Innovation: Evidence from Taiwan Manufacturing Industries," Conference papers 331005, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331005
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/331005/files/249.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Steven J. Matusz & David G. Tarr, 2017. "Adjusting To Trade Policy Reform," World Scientific Book Chapters, in: Trade Policies for Development and Transition, chapter 4, pages 77-114, World Scientific Publishing Co. Pte. Ltd..
    2. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    3. Safadi, Raed & Laird, Sam, 1996. "The Uruguay Round agreements: Impact on developing countries," World Development, Elsevier, vol. 24(7), pages 1223-1242, July.
    4. Burfisher, Mary E., 2001. "The Road Ahead: Agricultural Policy Reform In The Wto -- Summary Report," Agricultural Economic Reports 34067, United States Department of Agriculture, Economic Research Service.
    5. Diaz-Bonilla, Eugenio & Thomas, Marcelle & Robinson, Sherman & Cattaneo, Andrea, 2000. "Food security and trade negotiations in the World Trade Organization," TMD discussion papers 59, International Food Policy Research Institute (IFPRI).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lucian Cernat & Sam Laird & Alessandro Turrini, 2003. "How Important are Market Access Issues for Developing Countries in the Doha Agenda?," International Trade 0302004, University Library of Munich, Germany.
    2. Alex F. McCalla & John Nash, 2007. "Reforming Agricultural Trade for Developing Countries : Volume 2. Quantifyng the Impact of Multilateral Trade Reform," World Bank Publications - Books, The World Bank Group, number 13520, December.
    3. Laborde, David & Le Cacheux, Jacques, 2003. "Price and Welfare Effects of Agricultural Liberalization with Imperfect Competition in Food Industries and Trade," Conference papers 331155, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Salamon, P.B. & Herok, C.A., 2002. "Was bringen mögliche Ergebnisse der WTO-Verhandlungen und der Osterweiterung für den Milchmarkt?," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 37.
    5. Alessandro Turrini, 2003. "International Trade And Labour Market Performance:Major Findings And Open Questions," UNCTAD Blue Series Papers 20, United Nations Conference on Trade and Development.
    6. Boughanmi, Houcine & Zekri, S. & Opara, L. U. & Al-Hassani, M., 2009. "The Effects of Multilateral Trade Liberalization on Agriculture: The Case of the Gulf Cooperation Council (GCC) Countries," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 8(2).
    7. Simon J.Evenett & Mia Mikic & Ravi Ratnayake (ed.), 2011. "Trade-led growth: A sound strategy for Asia," ARTNeT Books and Research Reports, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), number brr10.
    8. Ianchovichina, Elena, 2004. "Trade policy analysis in the presence of duty drawbacks," Journal of Policy Modeling, Elsevier, vol. 26(3), pages 353-371, April.
    9. Pierre Boulanger & Hasan Dudu & Emanuele Ferrari & George Philippidis, 2016. "Russian Roulette at the Trade Table: A Specific Factors CGE Analysis of an Agri-food Import Ban," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(2), pages 272-291, June.
    10. Jiang, Tingsong, 2003. "The Impact of China's WTO Accession on its Regional Economies," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 11.
    11. Henseler, Martin & Piot-Lepetit, Isabelle & Ferrari, Emanuele & Mellado, Aida Gonzalez & Banse, Martin & Grethe, Harald & Parisi, Claudia & Hélaine, Sophie, 2013. "On the asynchronous approvals of GM crops: Potential market impacts of a trade disruption of EU soy imports," Food Policy, Elsevier, vol. 41(C), pages 166-176.
    12. Adams, Philip D., 2008. "Insurance against Catastrophic Climate Change: How Much Will an Emissions Trading Scheme Cost Australia?," Conference papers 331770, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    13. Kym Anderson, 2005. "On the Virtues of Multilateral Trade Negotiations," The Economic Record, The Economic Society of Australia, vol. 81(255), pages 414-438, December.
    14. Pavel Ciaian & d'Artis Kancs & Jan Pokrivcak, 2008. "Comparative Advantages, Transaction Costs and Factor Content of Agricultural Trade: Empirical Evidence from the CEE," EERI Research Paper Series EERI_RP_2008_03, Economics and Econometrics Research Institute (EERI), Brussels.
    15. Kym Anderson & Anna Strutt, 2012. "Agriculture and Food Security in Asia by 2030," Macroeconomics Working Papers 23309, East Asian Bureau of Economic Research.
    16. Dhoubhadel, Sunil P. & Taheripour, Farzad & Stockton, Mathew C., 2016. "Livestock Demand, Global Land Use, and Induced Greenhouse Gas Emissions," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235271, Agricultural and Applied Economics Association.
    17. Federico Perali & Stefania Lovo, 2009. "Counterfactual analysis using a regional dynamic general equilibrium model with historical calibration," Working Papers 58/2009, University of Verona, Department of Economics.
    18. Mai, Yinhua, 2008. "Removing border protection on wheat and rice: effects on rural income and food self-sufficiency in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(2), pages 1-19.
    19. Palatnik, Ruslana R. & Kan, Iddo & Rapaport-Rom, Mickey & Ghermandi, Andrea & Eboli, Fabio & Shechter, Mordechai, 2011. "Land transformation analysis and application," Conference papers 332155, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    20. Hareau, Guy Gaston & Norton, George W. & Mills, Bradford F. & Peterson, Everett B., 2004. "Potential Benefits Of Transgenic Rice In Asia: A General Equilibrium Approach," 2004 Annual meeting, August 1-4, Denver, CO 20334, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:pugtwp:331005. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/gtpurus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.