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Thomas Sterner Presentation - The Porter Hypothesis at 20: Can Environmental Regulation Enhance Innovation and Competitiveness? June 2010
 

Thomas Sterner Presentation - The Porter Hypothesis at 20: Can Environmental Regulation Enhance Innovation and Competitiveness? June 2010

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Sesssion 2: Effect of Regulatory Instrument Choice

Sesssion 2: Effect of Regulatory Instrument Choice
Thomas Sterner

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  • 1, social legislation, equal opportunity, workplace safety, gender equality, gay rights….
  • 1: Must have some policy: Ban Tax or technology policy 2: Tax achieves same with less grief than ban 3: Techn policy very effective for innovation – but of course this was in Germany – heart of Chem industry 4 This probably does illustrate a case where there are big and unexpected advantages to resource efficincy and new thinking…
  • Refunded emission payments. Make a HIGH LEVEL politically acceptable by splitting industry lobby High level  both innovation and diffusion. + Large number of patents. Sweden become hothouse of combustion technology. Not necessarily pure PH for all countries in long run but definitely a temporary advantage for first movers

Thomas Sterner Presentation - The Porter Hypothesis at 20: Can Environmental Regulation Enhance Innovation and Competitiveness? June 2010 Thomas Sterner Presentation - The Porter Hypothesis at 20: Can Environmental Regulation Enhance Innovation and Competitiveness? June 2010 Presentation Transcript

  • Some comments on Porter H Thomas Sterner Univ of Gothenburg Sweden
  • What is unique about Environment?
    • Does PH apply to any regulation?
    • If not: what is unique about environment?
    • Could it be:
    • Closely related to resource and raw material efficiency and thus savings as these Prices rise
    • First mover advantage (A gains from reg if other countries follow).
    • Unexpected, large IRS in environmental imputs
  • Testing
    • As P points out, hard to test at agg level
    • Revealed Comparative Advantage approach,
    • Quiroga, Persson & Sterner found very mixed support some for and some against PH
  • Innovation effects of different instruments
    • Difference between C&C and MBI
    • Difference between various MBI,
    • Numerous theory studies (eg tax/permits)
    • My experience: TCE and NOx
  • Phase out of Trichloroethylene Thomas Sterner Policy Instruments
  • Prof Update Thomas Sterner
  • Conclusion
    • Instrument selection & design is complex
    • Effects of one instrument depend on:
    • Many factors that vary btw countries/industries
    • Market economy has systematic disregard for E
    • It is often the case that env regulations spread and become more severe  first mover advantages