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The innovation and performance effects of well-designed environmental regulation: evidence from Sweden
Jönköping University, School of Engineering, JTH, Supply Chain and Operations Management. Centre for Young and Family Enterprises (CYFE), Università degli Studi di Bergamo, Bergamo, Italy.ORCID iD: 0000-0002-4825-4523
Centre for Young and Family Enterprises (CYFE), Università degli Studi di Bergamo, Bergamo, Italy.
2019 (English)In: Industry and Innovation, ISSN 1366-2716, E-ISSN 1469-8390, Vol. 26, no 5, p. 534-567Article in journal (Refereed) Published
Abstract [en]

This paper provides novel empirical insights into the Porter hypothesis (PH) and its dynamic nature. The PH posits that well-designed environmental regulations induce eco-innovations at polluting firms that improve both their environmental and business performance via ‘innovation offsets.’ We conduct an econometric test of this proposition, using Swedish pulp and paper plants as empirical application. Swedish environmental regulation of polluting industries provides an interesting case because it has been praised, due to containing elements of ‘well-designed’ regulations, for being conducive to accomplishing the ‘win-win’ situation of mutual environmental and economic benefits. The empirical results indicate that flexible and dynamic command-and-control regulation and economic incentive instruments have induced innovation offsets through improved energy efficiency. Our study bears important implications: empirical tests of the PH 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, 2019. Vol. 26, no 5, p. 534-567
Keywords [en]
command-and-control, double dividend, economic instruments, innovation offsets, polluting industries, Porter hypothesis, well-designed regulation, win-win
National Category
Business Administration Environmental Management
Identifiers
URN: urn:nbn:se:hj:diva-41064DOI: 10.1080/13662716.2018.1468240ISI: 000464579000003Scopus ID: 2-s2.0-85046453498Local ID: HOA JTH 2019;JTHLogistikISOAI: oai:DiVA.org:hj-41064DiVA, id: diva2:1235447
Available from: 2018-07-25 Created: 2018-07-25 Last updated: 2019-05-08Bibliographically approved

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Weiss, Jan Frederic

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CiteExportLink to record
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Citation style
  • apa
  • harvard1
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  • modern-language-association-8th-edition
  • vancouver
  • Other style
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  • de-DE
  • en-GB
  • en-US
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  • nn-NB
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  • Other locale
More languages
Output format
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