The Impacts of Environmental Regulations on Competitiveness
London School of Economics and Political Science
Abstract
This article reviews the empirical literature on the impacts of environmental regulations on firms’ competitiveness as measured by trade, industry location, employment, productivity, and innovation. The evidence shows that environmental regulations can lead to statistically significant adverse effects on trade, employment, plant location, and productivity in the short run, in particular in a well-identified subset of pollution- and energy-intensive sectors, but that these impacts are small relative to general trends in production. At the same time, there is evidence that environmental regulations induce innovation in clean technologies, but the resulting benefits do not appear to be large enough to outweigh…
Citation impact
- FWCI
- 258.06
- Percentile
- 100%
- References
- 165
Authors
2Topics & keywords
- Productivity
- Production (economics)
- Natural resource economics
- Porter hypothesis
- Business
- Environmental impact assessment
- Empirical evidence
- Environmental regulation
- Industry, innovation and infrastructure