The Environmental Porter Hypothesis as a Technology Adoption Problem?
AbstractThe Porter Hypothesis postulates that the costs of compliance with environmental standards may be offset by adoption of innovations they trigger. We model this hypothesis using a game of timing of technology adoption. We show that times of adoption are earlier the higher the non-adoption tax. The environmental tax turns the preemption game with low profits into a game with credible precommitment yielding high profits (pro-Porter). If there is a precommitment game without environmental taxes, the introduction of a tax leads to lower profits (anti-Porter).
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Bibliographic InfoPaper provided by Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT) in its series Research Memorandum with number 008.
Date of creation: 2005
Date of revision:
economics of technology ;
Other versions of this item:
- Kriechel,Ben & Ziesemer,Thomas, 2003. "The Environmental Porter Hypothesis as a Technology Adoption Problem?," Research Memorandum 011, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
- Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
- F1 - International Economics - - Trade
- H7 - Public Economics - - State and Local Government; Intergovernmental Relations
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
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