TY  - JOUR
AU  - Jaffe,Adam B.
AU  - Palmer,Karen
TI  - Environmental Regulation and Innovation: A Panel Data Study
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5545
PY  - 1996
Y2  - April 1996
UR  - http://www.nber.org/papers/w5545
L1  - http://www.nber.org/papers/w5545.pdf
N1  - Author contact info:
Adam B. Jaffe
MS 021
Brandeis University
Waltham, MA 02454
Tel: 781/736-3451
Fax: 781/736-3457
E-Mail: ajaffe@brandeis.edu

Karen Palmer
Resources for the Future
1616 P Street, NW
Washington, DC 20036
E-Mail: palmer@rff.org
AB  - In a 1991 essay in Scientific American, Michael Porter suggested that environmental regulation may have a positive effect on the performance of domestic firms relative to their foreign competitors, by stimulating domestic innovation.  We examine the stylized facts regarding environmental expenditures and innovation in a panel of manufacturing industries.  We find that lagged environmental compliance expenditures have significant positive effect on R&D expenditures when we control for unobserved industry-specific effects.  We find little evidence, however, that industries' inventive output (as measured by patent applications) is related to compliance costs).
ER  -