[Econmaster2012] Research Seminar in Economics

[Frank Stähler]

Dear all,

The presenter in this week's "Research Seminar in Economics" on Tuesday, 
28.01., is Gerhard Clemenz from the University of Vienna.

The title of his talk will be

"Intra-industry trade, environmental policies and innovations: The 
Porter-Hypothesis revisited"

http://www.wiwi.uni-tuebingen.de/forschung0/research-seminars/research-seminar-in-economics.html

The seminar starts at 18.00 h in Room E09, Mohlstr. 36. You can find an 
abstract of the paper below.

Everybody is welcome.

Best wishes,

Udo Kreickemeier


Abstract

According to the Porter-Hypothesis (PH) stricter environmental 
regulations in one country may trigger innovations in that country, 
which may partially or more than fully offset the compliance costs of 
domestic firms, thus possibly improving their international 
competitiveness. This paper investigates whether conditions exist under 
which this Hypothesis is valid either in its weak form (partially 
offsetting costs) or in its strong form (more than full offsetting of 
costs) where firms’ profits are actually increased. A duopoly model of 
intra-industry trade is used to identify various effects which work in 
favor of the PH. It is shown that the strong version may hold if 
environmental regulations increase consumers’ willingness to pay for 
products of “green” firms or when economies of scope in R&D exist which 
increase the probability of success of a process innovation. Similarly, 
the PH may hold if regulations affect the incentives of managers.



-- 
Frank Stähler
Professor of Economics
Department of Economics
International Economics and Labor Markets
The University of Tübingen
Mohlstr. 36 (V4)
D-72074 Tübingen, Germany
frank.staehler at uni-tuebingen.de

Adjunct Professor of Economics
School of Economics
The University of Adelaide
frank.staehler at adelaide.edu.au

http://www.frank-staehler.de