Abstract
According to the Porter Hypothesis (PH), environmental regulation dynamically works on technical innovation for a long term. This paper takes the panel data from Chinese industry during 2001–2010 using two different innovation outputs: patents and new product value and respectively explores the dynamic effect of environmental regulation in different periods from one to six years. The results show that environmental regulation promotes two types of innovation outputs, while it takes more time from regulation implementation to realizing new product value. The influence intensity of environmental regulation and patent appears an “M” type relationship, while the influence intensity of environmental regulation and new product value shows a “W” type.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Bailey P, Haq G, Gouldson A (2010) Mind the gap! Comparing ex ante and ex post assessments of the costs of complying with environmental regulation. Environ Policy Gov 12(5):245–256
Brunnermeier SB, Cohen MA (2003) Determinants of environmental innovation in US manufacturing industries. J Environ Econ Manag 45(2):278–293
Brunnermeier S, Levinson A (2004) Examining the evidence on environmental regulations and industry location. J Environ Dev Rev Int Policy 13(1):6–41
Calel R, Dechezlepretre A (2016) Environmental policy and directed technological change: evidence from the european carbon market. Rev Econ Stat 98:173–191
Chintrakarn P (2008) Environmental regulation and U.S. states’ technical inefficiency. Econ Lett 99(3):363–365
Costantini V, Mazzanti M, Montini A (2013) Environmental performance, innovation and spillovers: evidence from a regional namea. Ecol Econ 89(4):101–114
Deng P (2009) Why do Chinese firms tend to acquire strategic assets in international expansion? J World Bus 44(1):74–84
Feng C, Shi B, Kang R (2017) Does environmental policy reduce enterprise innovation? Evidence from China. Sustainability 9(6):872
Ford JA, Steen J, Verreynne ML (2014) How environmental regulations affect innovation in the australian oil and gas industry: going beyond the porter hypothesis. J Clean Prod 84(1):204–213
Ghisetti C, Quatraro F (2017) Green technologies and environmental productivity: a cross-sectoral analysis of direct and indirect effects in italian regions. Ecol Econ 132:1–13
Gray WB (2001) The cost of regulation: OSHA, EPA and the productivity slowdown. Am Econ Rev 77(77):998–1006
Horvathova E (2012) The impact of environmental performance on firm performance: short-term costs and long-term benefits? Ecol Econ 84(2):91–97
Hou J, Chen H, Xu J (2017) External knowledge sourcing and green innovation growth with environmental and energy regulations: evidence from manufacturing in China. Sustainability 9(3):342
Jaffe A, Palmer K (1997) Environmental regulation and innovation: a panel data study. Rev Econ Stat 79(4):610–619
Jeppesen T, List J, Folmer H (2002) Environmental regulations and new plant location decisions: evidence from a meta analysis. J Reg Sci 42(1):19–49
Kalt JP (1985) The impact of domestic environmental regulatory policies on US international competitiveness. Recursos Naturais
Kneller R, Manderson E (2012) Environmental regulations and innovation activity in UK manufacturing industries. Res Energy Econ 34(2):211–235
Lanoie P, Rochon-Fabien A (2012) Promoting pollution prevention in small businesses: costs and benefits of the "enviroclub" initiative. Can Public Policy 38(2):217–232
OECD (2010) Linkages between environmental policy and competitiveness. OECD Environment Working Papers 13:53
Porter M (1990) Competitive intelligence review. The Free Press, New York, p 427. (Competitive Intelligence Review 1(1):427)
Porter M (1991) America’s green strategy, pp 193–246
Porter M, Claas VDL (1995) Toward a new conception of the environment-competitiveness relationship. J Econ Perspect 9(4):97–118
Qiu D, Zhou Y (2013) Cointegration mechanism between environmental regulation and pollution-intensive industry: empirical study based on VAR model and VEC model. Technol Econ
Rai A, Patnayakuni R, Patnayakuni N (1997) Technology investment and business performance. Commun ACM 40(7):89–97
Rubashkina Y, Galeotti M, Verdolini E (2015) Environmental regulation and competitiveness: empirical evidence on the porter hypothesis from european manufacturing sectors. Energy Policy 83(35):288–300
Sen S (2015) Corporate governance, environmental regulations, and technological change. Eur Econ Rev 80:36–61
Sherrington C, Moran D (2010) The accuracy of regulatory cost estimates: a study of the london congestion charging scheme. Environ Policy Gov 17(2):106–123
Tan J, Zong G et al (2013) The impact of Chinese government environmental regulation on low-carbon economy based on VAR model. Sci Technol Manag Res 35(41):35–102
Tan S, Habibullah M et al. (2017) The impact of the dimensions of environmental performance on firm performance in travel and tourism industry. J Environ Manag
Yang C, Tseng Y, Chen C (2012) Environmental regulations, induced R&D, and productivity: evidence from Taiwan’s manufacturing industries. Res Energy Econ 34(4):514–532
Yuan B, Ren S, Chen X (2017) Can environmental regulation promote the coordinated development of economy and environment in China’s manufacturing industry?–a panel data analysis of 28 sub-sectors. J Clean Prod 149:11–24
Zhao X, Sun B (2016) The influence of chinese environmental regulation on corporation innovation and competitiveness. J Clean Prod 112(4):1528–1536
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 Springer International Publishing AG, part of Springer Nature
About this paper
Cite this paper
Wang, X., Li, Y., Wang, Y. (2019). Testing the Dynamic Nature of Porter Hypothesis: Evidence from the Chinese Industrial Sectors. In: Xu, J., Cooke, F., Gen, M., Ahmed, S. (eds) Proceedings of the Twelfth International Conference on Management Science and Engineering Management. ICMSEM 2018. Lecture Notes on Multidisciplinary Industrial Engineering. Springer, Cham. https://doi.org/10.1007/978-3-319-93351-1_52
Download citation
DOI: https://doi.org/10.1007/978-3-319-93351-1_52
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-93350-4
Online ISBN: 978-3-319-93351-1
eBook Packages: Intelligent Technologies and RoboticsIntelligent Technologies and Robotics (R0)