Innovation and Environmental Stringency: The Case of Sulfur Dioxide Abatement

CentER Discussion Paper Series No. 2005-18

33 Pages Posted: 21 Feb 2005

See all articles by Frans P. de Vries

Frans P. de Vries

affiliation not provided to SSRN

Cees Withagen

Free University of Amsterdam; Tilburg University

Date Written: January 2005

Abstract

A weak version of the Porter hypothesis claims that strict environmental policy provides positive innovation incentives, hence triggering improved competitiveness and securing environmental quality. In a comparative way, this paper empirically tests this hypothesis across countries by linking environmental stringency to innovation proxied by patents in the field of SO2 abatement over the period 1970-2000. Three different models of environmental stringency are examined. Two of these models do not reveal a positive significant effect on innovation as a result of increased stringency. In the theoretically preferred model, however, a positive relationship between environmental stringency and innovation is obtained.

Keywords: patents, pollution, control, environmental stringency, sulfur dioxide, innovation

JEL Classification: L51, L94, O31

Suggested Citation

de Vries, Frans P. and Withagen, Cees A. M., Innovation and Environmental Stringency: The Case of Sulfur Dioxide Abatement (January 2005). CentER Discussion Paper Series No. 2005-18, Available at SSRN: https://ssrn.com/abstract=670158 or http://dx.doi.org/10.2139/ssrn.670158

Frans P. De Vries (Contact Author)

affiliation not provided to SSRN ( email )

No Address Available

Cees A. M. Withagen

Free University of Amsterdam ( email )

Tinbergen Institute De Boelelaan 1105
1081 HV Amsterdam
Netherlands

Tilburg University ( email )

Postbus 90153
Tilburg, DC Noord-Brabant 5000 LE
Netherlands

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