Environmental Policy, Innovation and Performance: New Insights on the Porter Hypothesis
Jaffe and Palmer (1997) present three distinct variants of the so-called Porter Hypothesis. The weak version of the hypothesis posits that environmental regulation will stimulate certain kinds of environmental innovations. The narrow version of the hypothesis asserts that flexible environmental policy regimes give firms greater incentive to innovate than prescriptive regulations, such as technology-based standards. Finally, the strong version posits that properly designed regulation may induce cost-saving innovation that more than compensates for the cost of compliance. In this paper, we test the significance of these different variants of the Porter Hypothesis using data on the four main elements of the hypothesised causality chain (environmental policy, research and development, environmental performance and commercial performance). The analysis is based upon a unique database which includes observations from approximately 4200 facilities in seven OECD countries. In general, we find strong support for the weak version, qualified support for the narrow version, and qualified support for the strong version as well. Jaffe et Palmer (1997) présentent trois variantes distinctes de l'hypothèse de Porter. La version « faible » de l'hypothèse suppose que la réglementation environnementale stimulera l'apparition d'innovations dans le domaine de l'environnement. La version « étroite » de l'hypothèse affirme que les réglementations environnementales flexibles donnent aux firmes une plus grande incitation pour innover que les réglementations rigides, telles que les normes prescrivant une technologie pour une industrie donnée. Enfin, la version « forte » pose qu'une réglementation correctement conçue peut induire davantage de gains en termes d'innovation que de coûts pour se conformer à la règle. Dans cet article, nous examinons la portée de ces différentes variantes de l'hypothèse de Porter en utilisant des données sur les quatre principaux éléments de la chaîne présumée de c
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Volume (Year): 20 (2011)
Issue (Month): 3 (09)
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