Unmasking the Porter hypothesis : environmental innovations and firm-profitability


Rexhäuser, Sascha ; Rammer, Christian


[img]
Preview
PDF
dp11036.pdf - Published

Download (280kB)

URL: http://ub-madoc.bib.uni-mannheim.de/3187
URN: urn:nbn:de:bsz:180-madoc-31877
Document Type: Working paper
Year of publication: 2011
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: Q55 Q58 ,
Subject headings (SWD): Deutschland , Umweltpolitik , Umwelttechnik , Innovation , Rentabilität , Internationaler Wettbewerb , Schätzung
Keywords (English): Environmental innovation , environmental regulation , Porter hypothesis , competitiveness
Abstract: We examine impacts of different types of environmental innovations on firm profits. Following Porter’s (1991) hypothesis that environmental regulation can improve firms’ competitiveness we distinguish regulation induced and voluntary environmental innovations. We find that innovations which reduce environmental externalities reduce firms’ profits, as long as they are induced by regulations. However, innovation that increases a firm’s material or energy efficiency in terms of material or energy consumption has a positive impact on profitability. This positive result holds both for regulation induced and voluntary innovations, although the effect is significantly larger for regulation-driven innovation.We conclude that the Porter hypothesis does not hold in general for its “strong” version but has to be qualified by the type of environmental innovation. Our finding rest on firm level data from the German part of the Community Innovation Survey in 2009.
Additional information:

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




+ Citation Example and Export

Rexhäuser, Sascha ; Rammer, Christian (2011) Unmasking the Porter hypothesis : environmental innovations and firm-profitability. Open Access [Working paper]
[img]
Preview


+ Search Authors in

+ Download Statistics

Downloads per month over past year

View more statistics



You have found an error? Please let us know about your desired correction here: E-Mail


Actions (login required)

Show item Show item