Explaining Green Innovation: Ten Years after Porter's Win-Win Proposition: How to Study the Effects of Regulation on Corporate Environmental Innovation?

Politische Vierteljahresschrift, Vol. 39, pp. 323-341, 2007

17 Pages Posted: 27 Jul 2006 Last revised: 11 Dec 2017

See all articles by Thomas Bernauer

Thomas Bernauer

ETH Zurich

Stephanie Engel

ETH Zürich

Daniel Kammerer

ETH Zürich

Jazmin Sejas Nogareda

ETH Zürich - CER-ETH - Center of Economic Research at ETH Zurich

Date Written: June 1, 2006

Abstract

This paper is now published as:

Bernauer, Thomas, Engels, Stéphanie, Kammerer, Daniel, and Seijas, Jazmin. 2007. Determinants of Green Innovation – Ten Years after Porter’s Win-Win Proposition: How to Study the Effects of Environmental Regulation? Politische Vierteljahresschrift 39: 323-341, 2007.

Please read and cite the published version.

While consumption and degradation of natural resources and the environment continue to grow worldwide, worries about declining competitiveness of European industry vis-a-vis US and Asian competitors persist. Against this background, the question of what drives environmental innovation in industry and what role regulation plays in this regard has become ever more relevant. Ten years ago Porter and van der Linde popularized the win-win proposition, stating that environmental regulation could induce innovation by making industry aware of and willing to exploit otherwise missed opportunities. This, they claimed, would result in environmental benefits and increased competitiveness. The Porter hypothesis has spurred a substantial amount of research on the influence of environmental regulation on innovation, but the results have so far remained inconclusive. We discuss the key problems in extant research and outline a comprehensive analytical framework for studying the effects of environmental regulation on innovation alongside firm-internal conditions and external market forces. This framework also takes into account varying opportunities for direct customer benefits across areas of environmental innovation. Very few political scientists have, thus far, ventured into this research area. Those who have focused on the sectoral, national or systemic (international) level. To complement this research we propose to improve the micro-foundations of our understanding of environmental innovation by applying the framework outlined in this paper at the firm and innovation field level within and across firms, industries, and countries.

Suggested Citation

Bernauer, Thomas and Engel, Stephanie and Kammerer, Daniel and Sejas Nogareda, Jazmin, Explaining Green Innovation: Ten Years after Porter's Win-Win Proposition: How to Study the Effects of Regulation on Corporate Environmental Innovation? (June 1, 2006). Politische Vierteljahresschrift, Vol. 39, pp. 323-341, 2007. Available at SSRN: https://ssrn.com/abstract=918733

Thomas Bernauer (Contact Author)

ETH Zurich ( email )

Center for Comparative and International Studies
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Zurich 8092, 8092
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HOME PAGE: http://www.ib.ethz.ch

Stephanie Engel

ETH Zürich ( email )

Lausanne CH-1001
Switzerland

Daniel Kammerer

ETH Zürich ( email )

Seilergraben 49
Zurich, 8092
Switzerland

Jazmin Sejas Nogareda

ETH Zürich - CER-ETH - Center of Economic Research at ETH Zurich ( email )

Zürichbergstrasse 18
Zurich, 8092
Switzerland

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