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Can Environmental Regulations be Good for Business? an Assessment of the Porter Hypothesis

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  • Ambec, Stefan
  • Barla, Philippe

Abstract

The Porter hypothesis asserts polluting firms can benefit from environmental policies, arguing that well-designed environmental regulations stimulate innovation, which by increasing either productivity or product value, leads to private benefits. As a consequence, environmental regulations would benefit both society and regulated firms. This point of view has found a receptive audience among policy makers and the popular press but has been severely criticized by economists. In this paper, we present some of the arguments in this debate and review the empirical evidence available so far in the economic literature.

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Bibliographic Info

Paper provided by Université Laval - Département d'économique in its series Cahiers de recherche with number 0505.

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Date of creation: 2005
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Handle: RePEc:lvl:laeccr:0505

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Keywords: Porter Hypothesis; Environmental Regulations; Competitiveness;

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