The Porter Hypothesis has been extensively debated in recent decades due to an influx in environmental regulation. This study aims to explain the Porter Hypothesis from a theoretical perspective, and to analyze it using an empirical OLS approach. The data compiled is firm- specific and studies firms from across different industries. The study uses Tobin's Q as the dependent variable in order to measure firm performance. Using the environmental performance track as a proxy for innovation, the results of this study have found that firms that abide, enforce, or even surpass the needs of environmental regulation tend to increase their profits on the long run.
Channaa, Bassel, "Can Environmental Sustainability Lead to Increased Profits? a Study of the Environmental Porter Hypothesis" (2011). Senior Independent Study Theses. Paper 755.
poter, environment, bassel, channaa, economics, sustainability, microeconomics, isoquant, isocost, firm, profitability
Bachelor of Arts
Senior Independent Study Thesis
© Copyright 2011 Bassel Channaa