“…Other major topics, both in research and policy, are the influence and the effects of environmental expenditure and regulation on economic development (Pearce & Palmer, 2001;Dechezleprêtre & Sato, 2014;Koźluk & Zipperer, 2015), if command and control measures limit technological progress, as they do not offer any motivation for innovation (De Santis & Lasinio, 2015), reduce productivity growth (Smith & Sims, 1985;Managi, Opaluch, Jin, & Grigalunas, 2005) and firms' profitability with respect to the relationship between free trade and pollution regulations (Alpay, Buccola, & Kerkvliet, 2002). The negative effects on labor productivity are either ambiguous (Becker, 2011), or contradictory, depending on the timeframe (Alpay et al, 2002), on the analysis model (Gray, 1987), or the chosen pollutant (Greenstone, List, & Syverson, 2012).…”