Title: The innovation inducement impact of environmental regulations on maritime transport: a literature review
Authors: Teemu Makkonen; Sari Repka
Addresses: Department of Border Region Studies, University of Southern Denmark, Alsion 2, DK-6400 Sønderborg, Denmark; Pan-European Institute, Turku School of Economics at the University of Turku, Rehtorinpellonkatu 3, FI-20014 Turku, Finland ' Centre for Maritime Studies, Brahea Centre at the University of Turku, University of Turku, P.O. Box 181, FI-28101 Pori, Finland
Abstract: Maritime transport is facing wide-ranking challenges due to stricter environmental regulations. It has been positioned that these stricter environmental regulations will significantly hamper the competitiveness of the shipping industry and other export/import oriented industries. However, contrasting views, arguing that environmental regulations will, in fact, enhance firms' competitiveness by inducing innovation, have also been voiced. Here, this issue is examined through a literature review on the innovation inducement impact of environmental regulations (i.e., the Porter Hypothesis), in general, and the economic impacts of environmental regulations (here Annex VI of the MARPOL Convention) as it applies to shipping in Northern Europe, in particular. According to the review, the literature is still inconclusive and lacks a clear consensus on the economic and innovation inducement impacts of environmental regulations on maritime transport. Therefore, the review concludes in suggestions for further studies on the use of marine scrubber systems as an illustrative case study example.
Keywords: environmental regulations; innovation inducement; marine scrubber systems; maritime industry; maritime transport; Northern Europe; Porter Hypothesis; shipping industry; literature review; economic impact.
International Journal of Innovation and Sustainable Development, 2016 Vol.10 No.1, pp.69 - 86
Received: 14 Feb 2014
Accepted: 29 Dec 2014
Published online: 02 Dec 2015 *