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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. Copyright 2003 Gatton College of Business and Economics, University of Kentucky..

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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.
  • Handle: RePEc:bla:growch:v:34:y:2003:i:3:p:359-379
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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, 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. "Ökonomische Auswirkungen umweltpolitischer Regulierungen : eine Machbarkeitsstudie vor dem Hintergrund der Anforderungen der Richtlinie 96/61/EG über die integrierte Vermeidung und Verminderung von Um," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 30.
    4. Hanna Hottenrott & Sascha Rexhäuser, 2015. "Policy-Induced Environmental Technology and Inventive Efforts: Is There a Crowding Out?," Industry and Innovation, Taylor & Francis Journals, pages 375-401.
    5. Ziesemer, Thomas & Kriechel, Ben, 2007. "The Environmental Porter Hypothesis: Theory, Evidence and a Model of Timing of Adoption," MERIT Working Papers 024, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    6. 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.
    7. Hottenrott, Hanna & Rexhäuser, Sascha, 2013. "Policy-induced environmental technology and incentive efforts: Is there a crowding out?," ZEW Discussion Papers 13-115, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    8. René Kemp & Luc Soete & Rifka Weehuizen, 2005. "Towards an Effective Eco-Innovation Policy in a Globalised Setting," Chapters,in: A Handbook of Globalisation and Environmental Policy, chapter 6 Edward Elgar Publishing.
    9. 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, pages 267-294.
    10. Wenzel, Tobias, 2014. "Consumer myopia, competition and the incentives to unshroud add-on information," Journal of Economic Behavior & Organization, Elsevier, pages 89-96.
    11. Kneller, Richard & Manderson, Edward, 2012. "Environmental regulations and innovation activity in UK manufacturing industries," Resource and Energy Economics, Elsevier, pages 211-235.
    12. René Kemp & Luc Soete & Rifka Weehuizen, 2012. "Towards an Effective Eco-Innovation Policy in a Globalised Setting," Chapters,in: A Handbook of Globalisation and Environmental Policy, Second Edition, chapter 7 Edward Elgar Publishing.
    13. Hanna Hottenrott & Sascha Rexhäuser, 2015. "Policy-Induced Environmental Technology and Inventive Efforts: Is There a Crowding Out?," Industry and Innovation, Taylor & Francis Journals, pages 375-401.
    14. Popp, David & Newell, Richard, 2012. "Where does energy R&D come from? Examining crowding out from energy R&D," Energy Economics, Elsevier, pages 980-991.
    15. 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.

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