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Innovation and environmental stringency: the case of sulfur dioxide abatement

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Author Info
Vries, Frans P. de
Withagen, Cees (Tilburg University, Center for Economic Research)

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Abstract

A weak version of the Porter hypothesis claims that strict environmental policy provides positive innovation incentives, hence triggering improved competitiveness and securing environmental quality. In a comparative way, this paper empirically tests this hypothesis across countries by linking environmental stringency to innovation proxied by patents in the field of SO2 abatement over the period 1970-2000. Three different models of environmental stringency are examined. Two of these models do not reveal a positive significant effect on innovation as a result of increased stringency. In the theoretically preferred model, however, a positive relationship between environmental stringency and innovation is obtained.

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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 18.

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Date of creation: 2005
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Handle: RePEc:dgr:kubcen:200518

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Find related papers by JEL classification:
L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    Other versions:
  2. Lanjouw, Jean Olson & Mody, Ashoka, 1996. "Innovation and the international diffusion of environmentally responsive technology," Research Policy, Elsevier, vol. 25(4), pages 549-571, June. [Downloadable!] (restricted)
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    Other versions:
  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. [Downloadable!] (restricted)
    Other versions:
  5. Abay Mulatu & Raymond J.G.M. Florax & Cees A. Withagen, 2004. "Environmental Regulation and International Trade," Tinbergen Institute Discussion Papers 04-020/3, Tinbergen Institute. [Downloadable!]
  6. Goldberg, Murray A, 1972. "The Determinants of U. S. Direct Investment in the E. E. C.: Comment," American Economic Review, American Economic Association, vol. 62(4), pages 692-99, September. [Downloadable!] (restricted)
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  14. repec:fth:harver:1473 is not listed on IDEAS
  15. Brunnermeier, Smita B. & Cohen, Mark A., 2003. "Determinants of environmental innovation in US manufacturing industries," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 278-293, March. [Downloadable!] (restricted)
  16. Yuquing Xing & Charles Kolstad, 2002. "Do Lax Environmental Regulations Attract Foreign Investment?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 21(1), pages 1-22, January. [Downloadable!] (restricted)
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  17. David Popp, 2004. "International Innovation and Diffusion of Air Pollution Control Technologies: The Effects of NOX and SO2 Regulation in the US, Japan, and Germany," NBER Working Papers 10643, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Arundel, Anthony & Kemp, Rene, 2009. "Measuring Eco-Innovation," UNU-MERIT Working Paper Series 017, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
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