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Well-designed environmental regulation and firm performance: Swedish evidence on the Porter hypothesis and the effect of regulatory time strategies
Jönköping University, Sweden.
Jönköping University, Sweden.
Linnaeus University, School of Business and Economics, Department of Marketing.ORCID iD: 0000-0003-3325-1482
2019 (English)In: Journal of Environmental Planning and Management, ISSN 0964-0568, E-ISSN 1360-0559, Vol. 62, no 2, p. 342-363Article in journal (Refereed) Published
Abstract [en]

Using recent data on a cross-section of Swedish chemical and pulp and paper firms, this paper provides novel empirical insights into the Porter hypothesis. Well-designed environmental regulation can stimulate firms’ innovative capabilities, while at the same time generating innovation offsets that may both offset net compliance costs and yield a competitive edge over those firms that are not affected by such regulations. In doing so, we also test the alleged effectiveness of regulatory time strategies in stimulating innovation activities of regulated firms. We find evidence for the effectiveness of such well-designed regulations: announced rather than existing regulation induces innovation and some innovation offsets. Our results imply that empirical tests of the Porter hypothesis that do not account for its dynamic nature, and that do not measure well-designed regulations, might provide misleading conclusions as to its validity.

Place, publisher, year, edition, pages
Taylor & Francis Group, 2019. Vol. 62, no 2, p. 342-363
Keywords [en]
Porter hypothesis, environmental regulation, regulatory time strategies, firm innovation, firm performance
National Category
Business Administration
Research subject
Economy, Business administration
Identifiers
URN: urn:nbn:se:lnu:diva-72047DOI: 10.1080/09640568.2017.1419940ISI: 000466167000009Scopus ID: 2-s2.0-85041892103OAI: oai:DiVA.org:lnu-72047DiVA, id: diva2:1194315
Available from: 2018-03-30 Created: 2018-03-30 Last updated: 2019-08-29Bibliographically approved

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Anisimova, Tatiana

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CiteExportLink to record
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Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf