Environmental Regulations and Technological Change in the Offshore Oil and Gas Industry.

Technological progress can play a key role in raising standards of living while improving environmental quality. Well-designed environmental regulations encourage innovation, while poorly designed regulations can inhibit progress. The Porter hypothesis goes further to suggest that tougher environmen...

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Bibliographic Details
Published in:Land Economics Vol. 81; no. 2; pp. 303 - 320
Main Authors: Managi, Shunsuke, Opaluch, James J., Jin, Di
Format: Article
Published: University of Wisconsin Press May 2005
Subjects:
Online Access:View this record in EBSCOhost
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          Managi, Shunsuke
          Opaluch, James J.
          Jin, Di
      su:
        Petroleum industry
        Technological innovations
        Environmental policy & economics
        Offshore oil well drilling
      sug:
        subj:
          Petroleum industry
          Technological innovations
          Environmental policy & economics
          Offshore oil well drilling
      ab: Technological progress can play a key role in raising standards of living while improving environmental quality. Well-designed environmental regulations encourage innovation, while poorly designed regulations can inhibit progress. The Porter hypothesis goes further to suggest that tougher environmental regulations could spur innovation, leading to increased productivity of market outputs. We apply frontier production analysis to measure various components of total factor productivity within a joint production model, which considers both market and environmental outputs. We test the causality between technological innovation and environmental regulation and find support for a recast version of the Porter hypothesis. (JEL O38, L71) Reprinted by permission of the publisher.
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    language: English
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