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Do voluntary pollution reduction programs (VPRs) spur or deter environmental innovation? Evidence from 33/50

  • Carrión-Flores, Carmen E.
  • Innes, Robert
  • Sam, Abdoul G.

We study whether a government-sponsored voluntary pollution reduction program (VPR) promotes or deters the development of new environmental technologies that yield future emission reduction benefits. Using a panel of 127 U.S. manufacturing industries defined by 3-digit SIC classifications over the 1989–2004 period, we estimate impacts of industry-level participation in the 33/50 program, a VPR initiated by government regulators in 1991, on industry-level rates of environmental patenting. We find that higher rates of 33/50 program participation are associated with significant reductions in the number of successful environmental patent applications five to nine years after the program ended.

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Article provided by Elsevier in its journal Journal of Environmental Economics and Management.

Volume (Year): 66 (2013)
Issue (Month): 3 ()
Pages: 444-459

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Handle: RePEc:eee:jeeman:v:66:y:2013:i:3:p:444-459
DOI: 10.1016/j.jeem.2013.05.002
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622870

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