October 24, 2010

The Porter Hypothesis at 20: Can Environmental Regulation Enhance Innovation and Competitiveness?

by Stefan Ambec, Mark A. Cohen, Stewart Elgie and Paul Lanoie

- Over the past 20 years, much has been written about what has since become known simply as the Porter Hypothesis ("PH"). Yet, even today, there is conflicting evidence, alternative theories that might explain the PH, and oftentimes a misunderstanding of what the PH does and does not say. This paper provides an overview of the key theoretical and empirical insights on the PH to date, draw policy implications from these insights, and sketches out major research themes going forward.

Ambec, S., M.A. Cohen, S. Elgie and P. Lanoie (2010). "The Porter Hypothesis at 20: Can Environmental Regulation Enhance Innovation and Competitiveness?" LERNA Working Paper, n. 10.14.320, Sept 2010.