Abstract
Porter hypothesis suggests tougher environmental regulations could spur technological growth, leading to an increase in productivity of market outputs, simultaneously providing greater environmental protection. This study tests the Porter hypothesis in US agriculture using state level data from 1973 through 1996. Luenberger productivity indexes, which are dual to the profit function and do not require the choice of input-output orientation, are measured with and without environmental factors. This study also tests the direction of causality between technological progress and stringent environmental regulation, and find support for a recast version of the Porter hypothesis, however, reject a standard version of the Porter hypothesis.
| Original language | English |
|---|---|
| Pages (from-to) | 310-324 |
| Number of pages | 15 |
| Journal | International Journal of Agricultural Resources, Governance and Ecology |
| Volume | 3 |
| Issue number | 3-4 |
| Publication status | Published - 2004 |
Keywords
- Agricultural risks
- Luenberger productivity
- Porter hypothesis
- Technological change
ASJC Scopus subject areas
- Ecology
- Agronomy and Crop Science
- Management, Monitoring, Policy and Law