Title: Competitiveness and environmental policies for agriculture: testing the Porter hypothesis

Authors: Shunsuke Managi

Addresses: Graduate School of Bio-Applications and Systems Engineering, Tokyo University of Agriculture and Technology, Koganei, Tokyo 184-8588, Japan

Abstract: Porter hypothesis suggests tougher environmental regulations could spur technological growth, leading to an increase in productivity of market outputs, simultaneously providing greater environmental protection. This study tests the Porter hypothesis in US agriculture using state level data from 1973 through 1996. Luenberger productivity indexes, which are dual to the profit function and do not require the choice of input-output orientation, are measured with and without environmental factors. This study also tests the direction of causality between technological progress and stringent environmental regulation, and find support for a recast version of the Porter hypothesis, however, reject a standard version of the Porter hypothesis.

Keywords: Luenberger productivity; technological change; Porter hypothesis; agricultural risks; environmental regulations; technological growth; United States; USA; agriculture; environmental policy; environmental protection; industrial performance.

DOI: 10.1504/IJARGE.2004.006043

International Journal of Agricultural Resources, Governance and Ecology, 2004 Vol.3 No.3/4, pp.310 - 324

Published online: 23 Jan 2005 *

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