Porter and van der Linde gave new insight ..
Porter and Claas van der Linde, "Green and Competitive" Harvard Business Review (Sept-October 1995), p 120-134.
( Porter, 1991; Porter and van der Linde, ..
We consider the performance of small and medium sized enterprises in Dutch horticulture under different environmental policy regimes across time. We address the question whether technical performance differs under these alternative regulatory regimes to test Porter's hypothesis that stricter environmental regulation reduces technical inefficiency. For this purpose, we use a stochastic production frontier framework allowing for inclusion of policy variables to measure the effect of alternative environmental policy regimes on firms' performance. The main result is that stricter environmental policy regimes have indeed reduced technical inefficiencies in Dutch horticulture. The estimation results indicate amongst others that the 1997 agreement on energy, nutrient and pesticides use enhances technical efficiency. Firms under the strict environmental policy regime are found to be more technically efficient than those under a lax regime, thereby supporting the claims by Porter and Van der Linde (Porter, M., Van der Linde, C., 1995. Green and Competitive: Ending the stalemate. Harvard Business Review 73, pp. 120-137) concerning Dutch horticulture. (C) 2006 Elsevier B.V. All rights reserved.
These are a type of technological change that will "partially or more than fully offset the costs of complying with environmental regulation" (Porter and van der Linde, 1995, p.
(Porter and van der Linde, 1995, ..
Michael Porter and Claas van der Linde’s work reframed and brought to a larger audience the debate about the relationship between environmental protection and economic performance. This work resulted in what is often called the "Porter hypothesis " which states that environmental protection and competition are not incompatible and that properly designed environmental regulation can act as a trigger to innovation that will in turn make companies more competitive. This paper critically assesses the theory and evidence for this hypothesis, emphasizing our growing understanding of the conditions under which it holds from two perspectives. From the viewpoint of business, it reviews the conditions under which businesses choose to innovate for the environment. From the viewpoint of governments, it discusses the types of policy that stimulate innovative responses. While Vicki Norberg-Bohm, Beyond the Double Dividend, June 19, 2000 Page 1Porter and van der Linde did a great service by refocusing the debate on the potential compatibility between competitiveness and environmental protection, this paper suggests that the discussion needs to be expanded beyond environmental regulation to include the full set of government activities that influence private sector decisions to innovate for the environment. In order to stimulate the industrial transformation required for sustainable development, governments will need to employ a broad range of policy mechanisms that can effectively and synergistically create new technologies and new markets. In particular, governments must consider how to support technology development as well as creating markets for environmentally-enhancing technologies.
CSR is seen by Porter and Van Der Linde ..
According to the Porter hypothesis, ..
Porter Hypothesis | Strategic Management | Innovation
Porter and Claas van der Linde
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Porter and van der Linde ..
the effects of environmental investments on efficiency in ..
Porter and van der Linde (1995a,b) in particular, claim that pollution is often a waste of resources.
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