The strong Porter Hypothesis in an endogenous growth model with satisficing managers

Dominique Bianco and Evens Salies

No 2016-01, Documents de Travail de l'OFCE from Observatoire Francais des Conjonctures Economiques (OFCE)

Abstract: Few endogenous growth models have focused attention on the strong Porter hypothesis, that stricter environmental policies induce innovations, the benefits ofwhich exceed the costs. A key assumption in this hypothesis is that policy strictness pushes rms to overcome some obstacles to profit maximization. We model this hypothesis by incorporating pollution and taxation in the Aghion and Grifith (2005) analysis of growth with satisficing managers. Our theoretical results predict the strong Porter hypothesis. Moreover, they suggest that the stringency of environmental policy should adjust to changes in the level of potential competition in the intermediate inputs sector

Keywords: Strong Porter Hypothesis; Environmental Policy; Endogenous Growth (search for similar items in EconPapers)
JEL-codes: D43 E03 O31 O41 O44 (search for similar items in EconPapers)
Date: 2016-01
New Economics Papers: this item is included in nep-env, nep-gro and nep-ino
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.ofce.sciences-po.fr/pdf/dtravail/WP2016-01.pdf (application/pdf)

Related works:
Journal Article: The Strong Porter Hypothesis in an Endogenous Growth Model with Satisficing Managers (2017)
Working Paper: The strong porter hypothesis in an endogenous growth model with satisficing managers (2017)
Working Paper: The strong porter hypothesis in an endogenous growth model with satisficing managers (2017)
Working Paper: The strong Porter hypothesis in an endogenous growth model with satisficing managers (2017)
Working Paper: The Strong Porter Hypothesis in an Endogenous Growth Model with Satisficing Managers (2016)
Working Paper: The Strong Porter Hypothesis in an Endogenous Growth Model with Satisficing Managers (2016)
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:fce:doctra:1601

Access Statistics for this paper

More papers in Documents de Travail de l'OFCE from Observatoire Francais des Conjonctures Economiques (OFCE) Contact information at EDIRC.
Bibliographic data for series maintained by Francesco Saraceno ().