چکیده:
rade creates wealth through economic growth, and increased level of income effects environment in different ways. Firstly, whenpeople become wealthier, their demand for environmental protectionwill increase because their priorities will change from employment, income, food or housing to more qualitative measures such as cleaner environment. Through increased level of income, trade can save peoplefrom the poverty versus environmental degradation circle which forces the poor people to exploit the environment in order to survive. Secondly, with rising level of national income, the governments and/or private firms could increase the expenditures targeting environmentaldevelopment. These changes resulting from wealth increase may also improve environmental rules and regulations. Usually the goal of environmental policies is to protect the environment by imposing restrictions on firms and/or consumers. These policies are oftencriticised as it is claimed that the international competitiveness of domestic firms is reduced. However, in contrast to this cost biased argument Michael Porter formulated the hypothesis that environmentalpolicies could also serve as a vehicle to enhance the competitiveness. However, Michael Porter formulated the hypothesis that saysenvironmental policy spurs innovation which makes firms better off in the long run, since it increases their competitiveness (Porter (1991), Porter and van der Linde (1995)). The aim of this paper is test for the validity of the Porter hypothesis and trade liberalisation effect onenvironment in the EU, the Persian Gulf and in North-South countries regions. Our results confirm the Porter hypothesis in these regions. Also, trade liberalisation increases the CO2 emission per capita in the Persian Gulf, EU and North-South countries regions.
خلاصه ماشینی:
The Stringency of Environmental Regulations and Technological Change: A Specific Test of the Porter Hypothesis Maryam Asghari∗ Abstract rade creates wealth through economic growth, and increased level of income effects environment in different ways.
The aim of this paper is test for the validity of the Porter hypothesis and trade liberalisation effect onenvironment in the EU, the Persian Gulf and in North-South countries regions.
The Porter hypothesis has also been criticized by Palmer, Oates and Portney (1995) who argue that there is always a trade-off between environmental regulation and competitiveness.
In this paper we will try to shed some light on this possible virtuous cycle between increasing competitiveness, technology diffusion analyzing a very specific industrial sectors and environmental regulations, such as country’s net tax on dirty products, to test validity of the Porter hypothesis.
In effect, more stringent environmental policy stimulates innovation since trade increases which in turn results in reduced exports and production of the dirty goods.
Therefore, the Porter hypothesis is valid for the policy of net tax on dirty products in the Persian Gulf, EU and South-North countries regions.
Our empirical results show that a more stringent environmental regulation (country’s net tax on dirty products), as trade be libered, spurs innovation which decreases CO2 emission per capita in the Persian Gulf, EU and the South-North regions.
Also, our results show that trade liberalisation increases the CO2 emission per capita in the Persian Gulf, EU and South-North countries regions.