IDEAS home Printed from https://ideas.repec.org/a/cii/cepiie/2021-q1-165-16.html
   My bibliography  Save this article

Environmental regulation and productivity growth: Main policy challenges

Author

Listed:
  • R. De Santis
  • P. Esposito
  • C. Jona Lasinio

Abstract

In this paper, we investigate the environmental regulation-productivity nexus for 18 OECD countries over the years 1990–2015 and discuss its main policy challenges. Our findings support the hypothesis that environmental policies generate positive productivity returns through innovation as suggested by Porter and Van Der Linde (1995). We find that environmental policies have a productivity growth-promoting effect. Both market and non-market based policies exert a positive but differentiated impact both on labour and multifactor productivity growth. As for specific policies, green taxes display the largest effect on multifactor productivity although with potentially negative redistributive effects. We also find that environmental regulation exerts an indirect positive impact on productivity growth fostering capital accumulation especially in high ICT intensive countries.

Suggested Citation

  • R. De Santis & P. Esposito & C. Jona Lasinio, 2021. "Environmental regulation and productivity growth: Main policy challenges," International Economics, CEPII research center, issue 165, pages 264-277.
    • Handle: RePEc:cii:cepiie:2021-q1-165-16
    as

    Download full text from publisher

    File URL: https://www.sciencedirect.com/science/article/pii/S2110701721000020
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Emmanuel Ebo Arthur & Solomon Gyamfi & Wolfgang Gerstlberger & Jan Stejskal & Viktor Prokop, 2023. "Towards Circular Economy: Unveiling Heterogeneous Effects of Government Policy Stringency, Environmentally Related Innovation, and Human Capital within OECD Countries," Sustainability, MDPI, vol. 15(6), pages 1-18, March.
    2. Anton Nugent & Dragana Radicic, 2023. "The Impact of Environmental Management on Labour Productivity," Sustainability, MDPI, vol. 15(16), pages 1-16, August.
    3. Bingqian Zhang & Xiaoxiao Chu & Hong Geng, 2023. "The impact of environmental regulation on executive turnover: Evidence from listed Chinese manufacturing companies," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 1318-1329, March.
    4. Benatti, Nicola & Groiss, Martin & Kelly, Petra & Lopez-Garcia, Paloma, 2023. "Environmental regulation and productivity growth in the euro area: testing the Porter hypothesis," Working Paper Series 2820, European Central Bank.
    5. Barbieri, Nicolò & Marzucchi, Alberto & Rizzo, Ugo, 2023. "Green technologies, interdependencies, and policy," Journal of Environmental Economics and Management, Elsevier, vol. 118(C).

    More about this item

    Keywords

    Environmental regulation; Productivity Innovation; Porter hypothesis;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cii:cepiie:2021-q1-165-16. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/cepiifr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.