The impact of pollution abatement investments on technology: Porter hypothesis revisited

Antonio Musolesi (), Jean-Pierre Huiban, Camilla Mastromarco () and Michel Simioni

No 2015084, Working Papers from University of Ferrara, Department of Economics

Abstract: This paper revisits the Porter hypothesis by pursuing two new directions. First, we compare the results obtained with two complementary approaches: parametric stochastic frontier analysis and conditional nonparametric frontier analysis. They presents relative advantages and drawbacks. Secondly, we pay attention not only on the average pollution abatement e ort e ect but we also focus on its variability across rms and over time. We provide new results suggesting that the traditional view about the e ect of environmental regulation on productivity and the Porter hypothesis may coexist. This evidence supports the idea that a well-designed environmental regulation a ects positively the rm performances in some instances.

Keywords: Porter hypothesis; pollution abatement investment; stochastic frontier analysis; time-varying eciency; Vuong test; conditional nonparametric frontier analysis (search for similar items in EconPapers)
JEL-codes: C14 C23 D24 Q50 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2015-04-24
New Economics Papers: this item is included in nep-env
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Citations: View citations in EconPapers (7)

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Working Paper: The impact of pollution abatement investments on technology: Porter hypothesis revisited (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:udf:wpaper:2015084

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