Environmental regulations and technological change in the offshore oil and gas industry

Shunsuke Managi, James J. Opaluch, Jin Di, Thomas A. Grigalunas

Research output: Contribution to journalArticle

89 Citations (Scopus)

Abstract

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.

Original languageEnglish
Pages (from-to)303-319
Number of pages17
JournalLand Economics
Volume81
Issue number2
DOIs
Publication statusPublished - May 2005

Fingerprint

technological change
gas industry
oil industry
innovation
total factor productivity
market
living standard
environmental quality
productivity
regulation
Oil and gas industry
Environmental regulation
Technological change
Innovation
Porter hypothesis

All Science Journal Classification (ASJC) codes

  • Environmental Science (miscellaneous)
  • Economics and Econometrics

Cite this

Environmental regulations and technological change in the offshore oil and gas industry. / Managi, Shunsuke; Opaluch, James J.; Di, Jin; Grigalunas, Thomas A.

In: Land Economics, Vol. 81, No. 2, 05.2005, p. 303-319.

Research output: Contribution to journalArticle

Managi, Shunsuke ; Opaluch, James J. ; Di, Jin ; Grigalunas, Thomas A. / Environmental regulations and technological change in the offshore oil and gas industry. In: Land Economics. 2005 ; Vol. 81, No. 2. pp. 303-319.
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