Why environmental regulation may lead to no-regret pollution abatement?
Empirical evidence support the existence of pollution abatement possibilities at negative costs, the so-called 'no-regret options'. We provide a microeconomic rationale for the existence of such potential at the firm's level under environmental regulation. An econometric application confirms that marginal pollution abatement cost curves with no-regret options are compatible with a standard production function, as stated in our theoretical model.
|Date of creation:||2006|
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- Ambec, Stefan & Barla, Philippe, 2005.
"Can Environmental Regulations be Good for Business? an Assessment of the Porter Hypothesis,"
Cahiers de recherche
0505, Université Laval - Département d'économique.
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