Theoretical Economics Letters
Volume 3, Issue 6 (December 2013)
ISSN Print: 2162-2078 ISSN Online: 2162-2086
Google-based Impact Factor: 1.19 Citations h5-index & Ranking
Environmental Regulation, Technology Innovation, and Profit: A Perspective of Production Cost Function ()
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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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