Competitiveness and environmental policies for agriculture: Testing the Porter hypothesis

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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 languageEnglish
Pages (from-to)310-324
Number of pages15
JournalInternational Journal of Agricultural Resources, Governance and Ecology
Volume3
Issue number3-4
Publication statusPublished - 2004
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Ecology
  • Agronomy and Crop Science
  • Management, Monitoring, Policy and Law

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