Environmental regulation, green R&D and the Porter hypothesis

Indrani Roy Chowdhury and Sandwip K. Das

Indian Growth and Development Review, 2011, vol. 4, issue 2, 142-152

Abstract: Purpose - The purpose of this paper is to examine the effects of environmental regulation on green R&D, as well as to characterize the conditions under which the Porter hypothesis, both the weak as well as the strict version, may or may not hold. Design/methodology/approach - The authors use a simple two‐stage model with environmental R&D and endogenously determined abatement costs to address these issues. Findings - In a monopoly framework, the authors identify a channel arising out of the replacement effect that may increase R&D incentives following stricter regulation. It was found that the Porter hypothesis, both the weak as well as the strong version, is likely to hold if the new technology is relatively efficient in production, but not otherwise. Originality/value - The paper makes a contribution towards the debate on the relationship between environmental regulation and green R&D, in particular the extremely influential Porter hypothesis.

Keywords: Research and development; Environmental regulations; Porter hypothesis; Abatement tax; Green R&D; Replacement effect (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
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:eme:igdrpp:v:4:y:2011:i:2:p:142-152

DOI: 10.1108/17538251111172041

Access Statistics for this article

Indian Growth and Development Review is currently edited by Professor Chetan Ghate, Professor Prabal Chowdhury and Professor Prabal Chowdhury

More articles in Indian Growth and Development Review from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().