The Porter hypothesis and hyperbolic discounting

Prabal Roy Chowdhury ()

Economics Bulletin, 2011, vol. 31, issue 1, 167-176

Abstract: We examine pollution-reducing R&D by a monopoly firm producing a dirty product. In a dynamic framework with hyperbolic discounting, we establish conditions under which the Porter hypothesis goes through, i.e. environmental regulation increases R&D, thus reducing pollution, as well as increasing firm profits. This is likely to hold whenever R&D costs are at an intermediate level, and the planning horizon of the firms is large.

Keywords: Porter hypothesis; abatement tax; R&D; hyperbolic discounting. (search for similar items in EconPapers)
JEL-codes: L2 Q5 (search for similar items in EconPapers)
Date: 2011-01-07
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2011/Volume31/EB-11-V31-I1-P19.pdf (application/pdf)

Related works:
Working Paper: The Porter Hypothesis and Hyperbolic Discounting (2010)
Working Paper: The Porter Hypothesis and Hyperbolic Discounting (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-10-00258

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().