Does the porter hypothesis explain expected future financial performance? The effect of clean water regulation on chemical manufacturing firms

Environmental and Resource Economics

Volumn 45, Issue 3, 2010, Pages 353-377

  Rassier, Dylan G ^a   Earnhart, Dietrich ^b  

^a PricewaterhouseCoopers USA   (United States)

^b UNIVERSITY OF KANSAS   (United States)

Author keywords

Chemical industry; Firm performance; Porter hypothesis; Regulated industries; Regulation

Indexed keywords

CHEMICAL ANALYSIS; CHEMICAL INDUSTRY; COMMERCE; FINANCE; INVESTMENTS; MANUFACTURE; PUBLIC UTILITIES;

CHEMICAL MANUFACTURING; CHEMICAL MANUFACTURING INDUSTRIES; FINANCIAL PERFORMANCE; FIRM PERFORMANCE; PORTER HYPOTHESIS; REGULATION; THEORETICAL ARGUMENTS; WASTEWATER DISCHARGE;

ENVIRONMENTAL REGULATIONS;

CHEMICAL INDUSTRY; EMPIRICAL ANALYSIS; ENVIRONMENTAL ECONOMICS; FINANCIAL POLICY; HYPOTHESIS TESTING; PERFORMANCE ASSESSMENT; POLLUTION POLICY; REGULATORY APPROACH; RESEARCH WORK; WASTEWATER;

EID: 77950691610     PISSN: 09246460     EISSN: None     Source Type: Journal    
DOI: 10.1007/s10640-009-9318-0     Document Type: Article

References (52)

1. Aiginger K (1993) Collusion, concentration and profits. Empirica 20(2): 159-173.
2. Alpay E, Buccola S, Kerkvliet J (2002) Productivity growth and environmental regulation in Mexican and US food manufacturing. Am J Agric Econ 84(4): 887-901.
3. Ambec S, Barla P (2002) A theoretical foundation of the Porter hypothesis. Econ Lett 75(3): 355-360.
4. Ambec S, Barla P (2007) Can environmental regulations be good for business? An assessment of the Porter hypothesis. Energy Stud Rev 14(2): 42-62.
5. Ambec S, Barla P (2007) Survol des fondements théoriques de l'hypothèse de Porter. L'Actualité économique 83(3): 299-414.
6. Becker R, Henderson V (2000) Effects of air quality regulations on polluting industries. J Politi Econ 108(2): 379-421.
7. Berman E, Bui LTM (2001) Environmental regulation and productivity: evidence from oil refineries. Rev Econ Stat 83(3): 498-510.
8. Berman E, Bui LTM (2001) Environmental regulation and labor demand: evidence from the south coast air basin. J Public Econ 79(2): 265-295.
9. Brännlund R, Färe R, Grosskopf S (1995) Environmental regulation and profitability: an application to Swedish pulp and paper mills. Environ Resour Econ 6(1): 23-36.
10. Brunnermeier S, Levinson A (2004) Examining the evidence on environmental regulations and industry location. J Environ Dev 13(1): 6-41.
11. © (2004) Thomson Gale, a part of the Thomson Corporation.
12. Capon N, Farley JU, Hoenig S (1990) Determinants of financial performance: a meta-analysis. Manag Sci 36(10): 1143-1159.
13. Chung JH, Pruitt SW (1994) A simple approximation to Tobin's q. Financ Manag 23(3): 70-74.
14. D'Aspremont C, Jacquemin A (1988) Joint R& D ventures: cooperative and non-cooperative R& D in duopoly with spillovers. Am Econ Rev 78(5): 1133-1137.
15. Dean TJ, Brown RL, Stango V (2000) Environmental regulation as a barrier to the formation of small manufacturing establishments: a longitudinal examination. J Environ Econ Manag 40(1): 56-75.
16. Dufour C, Lanoie P, Patry M (1998) Regulation and productivity. J Prod Anal 9: 233-247.
17. Earnhart D (2004) Panel data analysis of regulatory factors shaping environmental performance. Rev Econ Stat 86(1): 391-401.
18. Filbeck G, Gorman RF (2004) The relationship between the environmental and financial performance of public utilities. Environ Resour Econ 29: 137-157.
19. Gabel L, Sinclair-Desgagne B (1998) The firm, its routines and the environment. In: Tietenberg T, Folmer H (eds) The international yearbook of environmental and resource economics. Edward Elgar, pp 89-118.
20. Gray WB (1987) The cost of regulation: OSHA, EPA, and the productivity slowdown. Am Econ Rev 77(5): 998-1006.
21. Greenstone M (2002) The impacts of environmental regulations on industrial activity: evidence from the 1970 and 1977 Clean Air Act amendments and the census of manufactures. J Polit Econ 110(6): 1175-1219.
22. Hazilla M, Kopp RJ (1990) Social cost of environmental quality regulations: a general equilibrium analysis. J Polit Econ 98(4): 853-873.
23. Hirsch BT, Seaks TG (1993) Functional forms in regression models of Tobin's q. Rev Econ Stat 75(2): 381-385.
24. Jaffe AB, Palmer K (1997) Environmental regulation and innovation: a panel data study. Rev Econ Stat 79(4): 610-619.
25. Jaffe AB, Peterson SR, Portney PR, Stavins RN (1995) Environmental regulation and the competitiveness of US manufacturing: what does the evidence tell us?. J Econ Lit 33(1): 132-163.
26. Jorgenson DW, Wilcoxen PJ (1990) Environmental regulation and US economic growth. Rand J Econ 21(2): 314-340.
27. Kennedy P (1994) Stochastic innovation and cost of environmental regulation. L'Actualité économique 70(2): 199-209.
28. Khanna M, Damon LA (1999) EPA's voluntary 33/50 program: impact on toxic releases and economic performance of firms. J Environ Econ Manag 37(1): 1-25.
29. King A (1999) Retrieving and transferring embodied data: implications for management of interdependence within organizations. Manag Sci 45(7): 918-935.
30. King A (2000) Organizational response to environmental regulation: punctuated change or autogenesis?. Bus Strategy Environ 4(9): 224-238.
31. King A, Lenox M (2002) Exploring the locus of profitable pollution reduction. Manag Sci 48(2): 289-299.
32. Konar S, Cohen MA (2001) Does the market value environmental performance?. Rev Econ Stat 83(2): 281-289.
33. Lanoie P, Laurent-Lucchetti J, Johnstone N, Ambec S (2007) Environmental policy, innovation and performance: new insights on the Porter hypothesis. HEC Montreal, discussion paper IEA 07-06, Institut d'Économie Appliquée, June.
34. Lanoie P, Patry M, Lajeunesse R (2008) Environmental regulation and productivity: testing the Porter hypothesis. J Prod Anal 30(2): 121-128.
35. Levinson A (1996) Environmental regulations and manufacturers' location choices: evidence from the census of manufactures. J Public Econ 62(1-2): 5-29.
36. Lindenberg EB, Ross SA (1981) Tobin's q ratio and industrial organization. J Bus 54(1): 1-32.
37. List JA, Millimet D, Fredricksson P, McHone W (2003) Effects of environmental regulations on manufacturing plant births: evidence from a propensity score matching estimator. Rev Econ Stat 85(4): 944-952.
38. Managi S, Opaluch JJ, Jin D, Grigalunas TA (2005) Environmental regulations and technological change in the offshore oil and gas industry. Land Econ 81(2): 303-319.
39. McConnell VD, Schwab RM (1990) The impact of environmental regulation on industry location decisions: the motor vehicle industry. Land Econ 66(1): 67-81.
40. Miller EM (1988) Profit margins and concentration. Atl Econ J 16(1): 96.
41. Mohr R (2002) Technical change, external economies, and the Porter hypothesis. J Environ Econ Manag 43(1): 158-168.
42. Palmer K, Oates WE, Portney PR (1995) Tightening environmental standards: the benefit-cost or the no-cost paradigm?. J Econ Perspect 9(4): 119-132.
43. Perez-Quiros G, Timmerman A (2000) Firm size and cyclical variations in stock returns. J Financ 55: 1229-1262.
44. Popp D (2006) Exploring links between innovation and diffusion: adoption of NOx control technologies at US coal-fired power plants. NBER working paper 12119.
45. Porter ME (1990) The competitive advantage of nations. Free Press, New York.
46. Porter ME (1991) Green competitiveness. Sci Am 264: 168.
47. Porter ME, van der Linde C (1995) Toward a new conception of the environment-competitiveness relationship. J Econ Perspect 9(4): 97-118.
48. © (1993-2003) Standard and Poor's, a division of the McGraw-Hill Companies, Inc., All rights reserved.
49. Russo MV, Fouts PA (1997) A resource-based perspective on corporate environmental performance and profitability. Acad Manag J 40(3): 534-559.
50. Simpson DR, Bradford RL (1996) Taxing variable cost: environmental regulation as industrial policy. J Environ Econ Manag 30(3): 282-300.
51. van der Linde Claas (1993) The micro-economic implications of environmental regulation: a preliminary framework. In: Environmental policies and industrial competitiveness. Organization for Economic Cooperation and Development, Paris, pp 69-77.
52. Vogan CR (1996) Pollution abatement and control expenditures, 1972-94. Surv Curr Bus 76(9): 48-67.