Environmental Regulation, Technology Innovation, and Profit: A Perspective of Production Cost Function

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.

 

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M. Chang, "Environmental Regulation, Technology Innovation, and Profit: A Perspective of Production Cost Function," Theoretical Economics Letters, Vol. 3 No. 6, 2013, pp. 297-301. doi: 10.4236/tel.2013.36050.

Conflicts of Interest

The authors declare no conflicts of interest.

References

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