Greening Economic Growth: How can Environmental Regulation Enhance Innovation and Competitiveness?

In 1991, Michael Porter directly challenged the economic orthodoxy by suggesting that well-designed environmental regulation could potentially enhance competitiveness. Traditional economics held that placing environmental restrictions on firms necessarily restricted decision sets and ultimately decreased profits.  This research project will explore the relationship between environmental regulation, innovation, and competitiveness.  It aims to do two things: unpack 20 years of research through a meta-analysis, extracting key implications for economic thinking and future research; and complete new research, using unique datasets on patented ‘environmental’ inventions.  This research addresses two of INET-CIGI’s focal areas: “Sustainable Economics” and “Models of Development, Innovation and Growth”.

HEC Montreal