2014
DOI: 10.1787/eco_studies-2014-5jz2drqml75j
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Environmental policies and productivity growth

Abstract: The economic effects of environmental policies are of central interest to policymakers. The traditional approach sees environmental policies as a burden on economic activity, at least in the short to medium term, as they raise costs without increasing output and restrict the set of production technologies and outputs. At the same time, the Porter Hypothesis claims that well-designed environmental policies can provide a "free lunch" -encouraging innovation, bringing about gains in profitability and productivity… Show more

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Cited by 82 publications
(37 citation statements)
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“…However, Jaffe and Palmer () argued the opposite, that is, environmental regulation does not affect environmental innovation. So, the effect of environmental regulation on innovation activities depends on the level of study (Kozluk & Zipperer, ). Firm‐specific factors mean companies start from different places in their environmental innovation activities (Rehfeld et al, ), which makes it important to consider firms’ age and size as determinants of EI.…”
Section: Literature Review: Definition Types and Determinants Of Eimentioning
confidence: 99%
“…However, Jaffe and Palmer () argued the opposite, that is, environmental regulation does not affect environmental innovation. So, the effect of environmental regulation on innovation activities depends on the level of study (Kozluk & Zipperer, ). Firm‐specific factors mean companies start from different places in their environmental innovation activities (Rehfeld et al, ), which makes it important to consider firms’ age and size as determinants of EI.…”
Section: Literature Review: Definition Types and Determinants Of Eimentioning
confidence: 99%
“…Source: (i) Authors elaboration, (ii) Koźluk and Zipperer, (2014), (iii) Brunel and Levinson, 2013 3.…”
Section: Environmental Performance/outcomesmentioning
confidence: 99%
“…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).…”
Section: Theoretical Backgroundmentioning
confidence: 99%