Environmental regulation and productivity growth: main policy challenges

Roberta de Santis (), Piero Esposito and Cecilia Jona-Lasinio

LEQS – LSE 'Europe in Question' Discussion Paper Series from European Institute, LSE

Abstract: In this paper, we investigate the environmental regulation-productivity nexus for 14 OECD countries over the years 1990-2015 and discuss its main policy challenges. Our findings support the hypothesis that environmental policies generate positive productivity returns through innovation as suggested by Porter and Van Der Linde (1995). We find that environmental policies have a productivity growth-promoting effect. Both market and non-marked based policies exert a positive but differentiated impact on labour and multifactor productivity growth. Environmental policy measures generate also potentially mixed redistributive impacts. As for specific polices, green taxes display the largest effect on multifactor productivity although with potentially negative redistributive impact. We also find that environmental regulation exerts indirect positive effect on productivity growth fostering capital accumulation especially in high ICT intensive countries.

Keywords: Environmental regulation; productivity; innovation; Porter hypothesis (search for similar items in EconPapers)
Date: 2020-08
New Economics Papers: this item is included in nep-cse, nep-eff, nep-env, nep-eur, nep-ict, nep-ino and nep-tid
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http://www.lse.ac.uk/european-institute/Assets/Doc ... ers/LEQSPaper158.pdf (application/pdf)

Related works:
Journal Article: Environmental regulation and productivity growth: Main policy challenges (2021)
Journal Article: Environmental regulation and productivity growth: Main policy challenges (2021)
Working Paper: Environmental regulation and productivity growth: main policy challenges (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:eiq:eileqs:158

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