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Global Environmental Change (2019)
  • Kyle S Herman
The Porter Hypothesis (PH) postulates that globally competitive firms respond in innovative ways to tightening environmental regulation, increasing competitiveness, resulting in a 'win-win' scenario for businesses and the environment. In their seminal paper, Porter and van der Linde (1995), emphasize that a static interpretation of environmental regulations often leads researchers to content that domestic companies will become less competitive in global markets. Even though neoclassical economic methods predict such an outcome, it is our contention that using a Global Political Economy (GPE) lens as a framework for the PH is likely to support the main expectations of the PH. For example, the PH suggests that countries at the frontier of environmental regulation, or those countries that enact and maintain environmental regulations before other countries, are at an absolute advantage in comparison to countries with more lax regulations. Such 'frontier' countries thus imbue their firms with an early mover-advantage for eco-innovations. While a large body of literature addresses domestic policy impacts on domestic eco-innovations very little empirical or case-study research has defined the PH within a GPE conceptualization and, thus, restricts the usage of PH to narrow economic or domestic investigations rather than global and sectorially diverse studies.
  • Porter Hypothesis; Induced Technological Innovation; Green/Environmental Technology; Clean Energy Technology; Innovation; R&D
Publication Date
Spring 2019
Citation Information
Kyle S Herman. "GEC_2018_1274_Original_V1.pdf" Global Environmental Change (2019)
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