Environmental Regulation and Technological Change in the Offshore Oil and Gas Industry

Appropriate environmental regulations encourage innovation, and the Porter hypothesis suggests that tougher environmental regulations could spur innovations that lead to increased productivity of market outputs. Interactions among environmental regulations, productivity growth, and technological inn...

Full description

Saved in:
Bibliographic Details
Published in:Land economics 2005-05, Vol.81 (2), p.303-303
Main Authors: Managi, Shunsuke, Opaluch, James J, Jin, Di, Grigalunas, Thomas A
Format: Article
Language:English
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Appropriate environmental regulations encourage innovation, and the Porter hypothesis suggests that tougher environmental regulations could spur innovations that lead to increased productivity of market outputs. Interactions among environmental regulations, productivity growth, and technological innovation are examined for the offshore oil and gas sector. Frontier production analysis measures various components of total factor productivity within a joint production model. The evaluation shows an upward trend in productivity in the Gulf of Mexico oil and gas industry despite resource depletion and increasingly stringent environmental regulation. Improved productivity of environmental technologies is indicated, but such productivity change has lagged behind that for market outputs.
ISSN:0023-7639