Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/303441 
Year of Publication: 
2020
Series/Report no.: 
LEQS Paper No. 158
Publisher: 
London School of Economics and Political Science (LSE), European Institute, London
Abstract: 
In this paper, we investigate the environmental regulation-productivity nexus for 14 OECD countries over the years 1990-2015 and discuss its main policy challenges. Our findings support the hypothesis that environmental policies generate positive productivity returns through innovation as suggested by Porter and Van Der Linde (1995). We find that environmental policies have a productivity growth-promoting effect. Both market and non-marked based policies exert a positive but differentiated impact on labour and multifactor productivity growth. Environmental policy measures generate also potentially mixed redistributive impacts. As for specific polices, green taxes display the largest effect on multifactor productivity although with potentially negative redistributive impact. We also find that environmental regulation exerts indirect positive effect on productivity growth fostering capital accumulation especially in high ICT intensive countries.
Subjects: 
Environmental regulation
productivity
innovation
Porter hypothesis
Document Type: 
Working Paper

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