TITLE:
Environmental Regulation, Technology Innovation, and Profit: A Perspective of Production Cost Function
AUTHORS:
Ming-Chung Chang
KEYWORDS:
Porter Hypothesis; Environmental Regulation; Innovation
JOURNAL NAME:
Theoretical Economics Letters,
Vol.3 No.6,
December
5,
2013
ABSTRACT:
The Porter hypothesis asserts that a stricter environmental
regulation stimulates firms to conduct innovation and increase their profit.
This paper uses a theoretical framework to examine the Porter hypothesis. We
conclude that although a stricter environmental regulation can increase profit,
it does not stimulate innovation in a firm.