Background and Objective: One of the most prominent hypothesis in environmental economics is the Porter hypothesis. The Porter hypothesis argues that more stringent environmental policies can actually have a net positive effect on the competitiveness of regulated firms More
Background and Objective: One of the most prominent hypothesis in environmental economics is the Porter hypothesis. The Porter hypothesis argues that more stringent environmental policies can actually have a net positive effect on the competitiveness of regulated firms because such policies promote cost-cutting efficiency improvements, which in turn reduce or completely offset regulatory costs, and foster innovation in new technologies that may help firms achieve international technological leadership and expand market share. Given the importance of this hypothesis to policymakers and firms, many studies have been conducted to prove or disprove this hypothesis.
Material and Methodology: in this study, we used panel smooth transition regression for 25 OECD members during 2000-2015.
Findings: the results indicated that the weighted indicator of environmental policy stringency in linear and nonlinear part of the model had positive and significant effects on increasing the number of selected environmental technologies. The coefficient of variation was estimated to be 0.142 in the linear part and 0.213 in the nonlinear part. The speed of transition between the two regimes of weighted growth index of environmental policies, according to the estimated transition parameter, is 3.17.
Discussion and Conclusion: Analysis of results shows that when the weight index growth of environmental policies is low, the severity of the impact of independent and control variables on the number of selected environmental technologies will vary. Given the experience of developed countries, improving the state of the legal system and property rights, increasing official and state aid for environmental development, and increasing state funding for environmental research and development can play an effective role in improving competitiveness and enhancing enterprise innovation.
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This study investigates the effects of environmental regulations on manufacturing industries of the selected OECD countries (USA, U.K & Canada) using Porter Hypothesis (PH) and structure- conduct- performance- Paradigm (SCPP) during 1970-2013, by regarding to simult More
This study investigates the effects of environmental regulations on manufacturing industries of the selected OECD countries (USA, U.K & Canada) using Porter Hypothesis (PH) and structure- conduct- performance- Paradigm (SCPP) during 1970-2013, by regarding to simultaneous equations, and considering interoperability among market elements.Pollution Abatement Capital Expenditures (PACE) and environmental innovations are substitute variables for environmental regulations and competitiveness subsequently. The results show that increased industries expenditure to reduce emissions significantly increases their innovations and this proves Weak Porter Hypothesis (WPH) indicating positive impact of environmental regulation on competitiveness of the industries. Therefore, environmental regulations promote not only environmental quality, but also improve the industries competitiveness. The results, also, confirm the view that environmental policies are a win-win strategy.
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Purpose: From a systems perspective, the issue of environmental protection requires an environmental management system that can be implemented in an integrated manner with other management systems. The existence of an independent unit as research and development (R$D) i More
Purpose: From a systems perspective, the issue of environmental protection requires an environmental management system that can be implemented in an integrated manner with other management systems. The existence of an independent unit as research and development (R$D) in any organization is very important. Therefore, the present study evaluates the impact of R$D on the relationship between environmental performance and earnings per share this year and next year.Methodology: This research is descriptive and correlational. In order to investigate this issue, research hypotheses have been analyzed using structural equation modeling and based on information about 120 companies during the years 2012 to 2018.Findings: The results show that there is no significant relationship between environmental performance and earnings per share this year, but there is a positive and significant relationship between environmental performance and earnings per share next year. Also, R$D have a moderating effect on the relationship between environmental performance and earnings per share this year and earnings per share next year. This effect is negative and significant.Originality / Value: The results of this study, in addition to developing the literature on research and development costs and environmental costs, help all stakeholders and users to assess the extent to which companies pay attention to R&D and environmental issues.
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