Does Trade Liberalization Make the Porter Hypothesis Less Relevant
The Porter Hypothesis refers to the idea that environmental regulations push firms into developing and adopting new technologies. Controversially, it asserts that the investments in new technology that the firms are pushed into making would be profitable irrespective of whether the regulations had have been put in place. In this paper a simple model is used to illustrate a Porter Hypothesis situation. This framework allows us to establish what conditions are required for a tariff reduction to be an alternative to environmental regulations. That is, we look at a case where, under tariff protection, the firm will only invest in new technology when the environmental regulation is put in place, but in the absence of tariffs, the firm will invest in new technology irrespective of whether the environmental regulation is in place.
Volume (Year): 2 (2003)
Issue (Month): 2 (August)
|Contact details of provider:|| Postal: 100 Wenhwa Road, Seatwen, Taichung|
Web page: http://www.ijbe.org/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Campbell, Neil, 1998. "Can We Believe in Cold Showers?," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 13, pages 131-162.
- Catherine Liston-Heyes & Anthony Heyes, 1999. "Corporate Lobbying, Regulatory Conduct and the Porter Hypothesis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 13(2), pages 209-218, March.
When requesting a correction, please mention this item's handle: RePEc:ijb:journl:v:2:y:2003:i:2:p:129-140. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Yi-Ju Su)
If references are entirely missing, you can add them using this form.