Developed in the early 1990's, the Porter hypothesis claims that "well-designed" environmental regulation will foster eco-innovation, which will in turn, both improve business competitiveness and reduce environmental harm. This win-win situation has been, since then, the subject of many scientific papers. However, the focus has been the design of environmental policy instruments which the traditional dichotomy of command & control vs market-based. In this policy brief, we draw the attention to the importance of the perception of environmental regulation by business in driving eco-innovation. Accordingly, we show recommend policymakers to shift their mindset from penalising polluters to enabling eco-innovators using a mix of incentives that generate synergies and set long-term targets paving the way towards a more sustainable economy.
Bitat, A. (2017). TIME FOR ENVIRONMENTAL REGULATION TO PAVE THE WAY FOR ECO-INNOVATION. My Pollen Talks, Brussels, Belgium. https://hdl.handle.net/2078.5/178925