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Some Micro‐Evidence on the “Porter Hypothesis” from Austrian VOC Emission Standards

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  • Thomas Roediger‐Schluga

Abstract

This paper presents some micro‐evidence relevant to the “Porter Hypothesis” on the techno‐economic consequences of Austrian Volatile Organic Compound (VOC) emission standards, the most restrictive of their kind in the world. Using firm‐level survey data and complementing it with highly disaggregated foreign trade data, the paper explores whether the standards had a palpable impact on the competitiveness of Austrian manufacturers of paints, coatings, printing inks, and adhesives, whether compliance stimulated innovation in this industry, whether the standards crowded out other, more productive Research and Development (R&D), and whether compliance efforts gave rise to unexpected benefits of compliance. It finds no unequivocal aggregate impact on the competitiveness of regulated firms, yet does find some interesting variation with firm size. Moreover, the standards appear to have dampened import competition. The standards gave rise to considerable changes in firms’ product range and appear to have accelerated the rate of product innovation in the regulated industry. R&D spending to develop compliant products is found to be very unevenly distributed, mainly due to technological and, to a lesser extent, organizational factors. There is evidence that compliance efforts displaced or postponed existing R&D projects. However, there is also evidence that search for compliant products yielded unexpected and beneficial ideas, knowledge, and competencies.

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  • Thomas Roediger‐Schluga, 2003. "Some Micro‐Evidence on the “Porter Hypothesis” from Austrian VOC Emission Standards," Growth and Change, Wiley Blackwell, vol. 34(3), pages 359-379, August.
  • Handle: RePEc:bla:growch:v:34:y:2003:i:3:p:359-379
    DOI: 10.1111/1468-2257.00223
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    Cited by:

    1. Rubashkina, Yana & Galeotti, Marzio & Verdolini, Elena, 2015. "Environmental regulation and competitiveness: Empirical evidence on the Porter Hypothesis from European manufacturing sectors," Energy Policy, Elsevier, vol. 83(C), pages 288-300.
    2. John P. Weche, 2015. "Does green corporate investment really crowd out other business investment?," Working Paper Series in Economics 350, University of Lüneburg, Institute of Economics.
    3. Tilmann Rave & Ursula Triebswetter, 2006. "Economic impacts of environmental regulations," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 30, June.
    4. David Popp & Richard G. Newell, 2009. "Where Does Energy R&D Come From? Examining Crowding Out from Environmentally-Friendly R&D," NBER Working Papers 15423, National Bureau of Economic Research, Inc.
    5. Inglesi-Lotz, R., 2019. "Energy research and R&D indicators: An LMDI decomposition analysis for the IEA Big 5 in energy research," Energy Policy, Elsevier, vol. 133(C).
    6. Ben Kriechel & Thomas Ziesemer, 2009. "The environmental Porter hypothesis: theory, evidence, and a model of timing of adoption," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 18(3), pages 267-294.
    7. Hanna Hottenrott & Sascha Rexh�user, 2015. "Policy-Induced Environmental Technology and Inventive Efforts: Is There a Crowding Out?," Industry and Innovation, Taylor & Francis Journals, vol. 22(5), pages 375-401, July.
    8. Kneller, Richard & Manderson, Edward, 2012. "Environmental regulations and innovation activity in UK manufacturing industries," Resource and Energy Economics, Elsevier, vol. 34(2), pages 211-235.
    9. Teemu Makkonen & Sari Repka, 2016. "The innovation inducement impact of environmental regulations on maritime transport: a literature review," International Journal of Innovation and Sustainable Development, Inderscience Enterprises Ltd, vol. 10(1), pages 69-86.
    10. Yantao Gao & Xilong Yao & Wenxi Wang & Xin Liu, 2019. "Dynamic effect of environmental tax on export trade: Based on DSGE mode," Energy & Environment, , vol. 30(7), pages 1275-1290, November.
    11. René Kemp & Luc Soete & Rifka Weehuizen, 2012. "Towards an Effective Eco-Innovation Policy in a Globalised Setting," Chapters, in: Frank Wijen & Kees Zoeteman & Jan Pieters & Paul van Seters (ed.), A Handbook of Globalisation and Environmental Policy, Second Edition, chapter 7, Edward Elgar Publishing.
    12. Popp, David & Newell, Richard, 2012. "Where does energy R&D come from? Examining crowding out from energy R&D," Energy Economics, Elsevier, vol. 34(4), pages 980-991.

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