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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, School of Engineering, JTH, Industrial Engineering and Management.
Jönköping University, Jönköping International Business School, JIBS, Center for Family Enterprise and Ownership (CeFEO). Jönköping University, Jönköping International Business School, JIBS, Economics.ORCID iD: 0000-0001-5776-9396
Linnaeus University, Kalmar, Sweden.
2018 (English)In: Journal of Environmental Planning and Management, ISSN 0964-0568, E-ISSN 1360-0559Article in journal (Refereed) Epub ahead of print
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, 2018.
Keyword [en]
Porter hypothesis, environmental regulation, regulatory time strategies, firm innovation, firm performance
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-38851DOI: 10.1080/09640568.2017.1419940Scopus ID: 2-s2.0-85041892103OAI: oai:DiVA.org:hj-38851DiVA, id: diva2:1182912
Available from: 2018-02-15 Created: 2018-02-15 Last updated: 2018-03-02

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Weiss, Jan FredericStephan, Andreas

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CiteExportLink to record
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Citation style
  • apa
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  • ieee
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  • 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
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