PUBLICATIONS & REPORTS
PUBLICATIONS & REPORTS
From Kitakyushu to the world: AGI, a research institute that studies Asia's economy and society
Environmental Regulations, Induced R＆D, and Productivity： Evidence from Taiwan’s Manufacturing Industries
| Author | Chih-Hai Yang, Yu-Hsuan Tseng, Chiang-Ping Chen |
|---|---|
| Date of Publication | 2011. 11 |
| No. | 2011-18 |
| Download | 297KB |
Contents Introduction
This paper examines whether stringent environmental regulations induce more R&D and promote further productivity in Taiwan. Using an industry-level panel dataset for the 1997–2003 period, empirical results show that pollution abatement fees, a proxy for environmental regulations, is positively related to R&D expenditure, implying that stronger environment protection induces more R&D. On the other hand, pollution abatement capital expenditures do not have a statistically significant influence on R&D. Further evaluation of the influence of induced R&D by environment regulations on industrial productivity shows a significant positive association between them. This finding supports the Porter hypothesis that more stringent environmental regulations can lead to a possible “win-win” situation.