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Squandered profit opportunities? Some historical perspective on industrial waste and the Porter Hypothesis

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  • Desrochers, Pierre
  • Haight, Colleen E.

Abstract

Despite numerous studies, the ‘Porter Hypothesis’ (PH), which states well-designed regulations can compel manufacturers to develop innovations with both economic and environmental benefits, remains unsettled. We examine two significant cases for which PH claims were once made: the British alkali industry and the (Tennessee) Copper Basin smelting operations. Our conclusions are: (1) the PH is based on a flawed understanding of how ‘win win’ innovations spontaneously emerge in competitive settings, (2) regulatory pressures were only one (and typically minor) factor, and (3) “strict and well designed” environmental regulations are unlikely to deliver superior outcomes to traditional property rights-based approaches.

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  • Desrochers, Pierre & Haight, Colleen E., 2014. "Squandered profit opportunities? Some historical perspective on industrial waste and the Porter Hypothesis," Resources, Conservation & Recycling, Elsevier, vol. 92(C), pages 179-189.
    • Handle: RePEc:eee:recore:v:92:y:2014:i:c:p:179-189
    DOI: 10.1016/j.resconrec.2014.07.001
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    3. Jin, Chenfei & Tsai, Fu-Sheng & Gu, Qiuyang & Wu, Bao, 2022. "Does the porter hypothesis work well in the emission trading schema pilot? Exploring moderating effects of institutional settings," Research in International Business and Finance, Elsevier, vol. 62(C).
    4. Wu, Bao & Fang, Hanqing & Jacoby, Gady & Li, Geling & Wu, Zhenyu, 2022. "Environmental regulations and innovation for sustainability? Moderating effect of political connections," Emerging Markets Review, Elsevier, vol. 50(C).
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