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Rethinking the Porter Hypothesis: The Underappreciated Importance of Value Appropriation and Pollution Intensity
Author(s) -
Petroni Giorgio,
Bigliardi Barbara,
Galati Francesco
Publication year - 2019
Publication title -
review of policy research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.832
H-Index - 45
eISSN - 1541-1338
pISSN - 1541-132X
DOI - 10.1111/ropr.12317
Subject(s) - appropriation , porter hypothesis , profitability index , construct (python library) , value (mathematics) , positive economics , economics , environmental regulation , public economics , epistemology , computer science , philosophy , finance , machine learning , programming language
Abstract The impact of environmental regulation on the competitiveness of firms and industries remains a hot topic. Since the formulation of the Porter hypothesis, scholars from different research areas have tried to confirm or deny it. However, despite a vast literature engaging this debate, it remains unclear whether and under what conditions the hypothesis could be considered valid. We believe that this is due to the need to consider some additional factors. The aim of this review is to propose additional and significant themes, namely value appropriation and pollution intensity, to be considered when examining the impact of environmental regulation on the innovation and profitability of firms. Results show that the validity of the Porter hypothesis cannot be proved in any condition, but at the same time, there are additional factors that have a relevant influence on that construct, which can lead to a validation or rejection of the hypothesis.