Reconciling the Porter hypothesis with the traditional paradigm about environmental regulation: a nonparametric approach

Jean-Pierre Huiban, Camilla Mastromarco (), Antonio Musolesi and Michel Simioni ()
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Antonio Musolesi: Department of Economics and Management - UniFE - Università degli Studi di Ferrara = University of Ferrara
Michel Simioni: UMR MOISA - Marchés, Organisations, Institutions et Stratégies d'Acteurs - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier

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Abstract: This paper estimates the impact of pollution abatement investments on the production technology of firms by pursuing two new directions. First, we take advantage of recent econometric developments in productivity, efficiency analysis and nonparametric kernel regression by adopting a conditional nonparametric frontier analysis. Second, we focus not only on the average effect but also search for potential nonlinearities. We provide new results suggesting that pollution abatement capital affects with a bell-shaped fashion technological catch-up (inefficiency distribution) and does not affect technological change (shifts in the frontier). These results have relevant implications both for modeling and for the purposes of advice on environmentally friendly policy.

Keywords: conditional nonparametric frontier analysis; full and partial order frontiers; infinite order cross-validated local polynomial regression; separability condition; porter hypothesis; location-scale nonparametric regression (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (7)

Published in Journal of Productivity Analysis, 2018, 50 (3), pp.85-100. ⟨10.1007/s11123-018-0536-8⟩

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Journal Article: Reconciling the Porter hypothesis with the traditional paradigm about environmental regulation: a nonparametric approach (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02623725

DOI: 10.1007/s11123-018-0536-8

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