Miguel Quiroga Presentation - The Porter Hypothesis at 20: Can Environmental Regulation Enhance...
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THE PORTER HYPOTHESIS AT 20:
THE EFFECT OF ENVIRONMENTAL REGULATION
ON PRODUCTIVITY AND COMPETITIVENESS
Miguel Quiroga
Economics Department, Universidad de Concepcion
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![Page 2: Miguel Quiroga Presentation - The Porter Hypothesis at 20: Can Environmental Regulation Enhance Innovation and Competitiveness? June 2010](https://reader036.fdocuments.in/reader036/viewer/2022082916/54c5d3e24a7959bc298b469c/html5/thumbnails/2.jpg)
RESEARCH BACKGROUND
Joint with Thomas Sterner and Martin Persson
It is based in the Heckscher-Ohlin-Vanek model of trade.
Country’s net exports are expressed as a linear function of environmental endowments.
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![Page 3: Miguel Quiroga Presentation - The Porter Hypothesis at 20: Can Environmental Regulation Enhance Innovation and Competitiveness? June 2010](https://reader036.fdocuments.in/reader036/viewer/2022082916/54c5d3e24a7959bc298b469c/html5/thumbnails/3.jpg)
ISSUES
• We have been testing an incorrect HOV equation. The correct factor content of trade definition includes a consumption condition that could be correlated with the environmental endowment (Trefler and Zhu, 2006).
• Parameters estimated using OLS would be downwards biased, increasing the possibility to find no evidence of pollution haven or the opposite result.
• Industrial aggregation matters
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