Triggering business responses to climate policy in Australia
Publication Name
Australian Journal of Management
Abstract
The ‘Porter hypothesis’ predicts that well-designed environmental regulations will stimulate businesses to innovate to reduce their environmental impact for efficiency reasons. This article analyses the impacts and anticipation effects of Australia’s carbon price on firms’ carbon reduction activities, through survey data on 466 medium-to-large Australian businesses. We build upon the Porter hypothesis by demonstrating that the anticipated impact of regulation may be as important as its implementation in triggering environmental innovation, thus developing the notion of a ‘signal’ effect. JEL Classification: D22 and 033
Open Access Status
This publication is not available as open access
Volume
46
Issue
2
First Page
248
Last Page
271
Funding Number
DIISR13/00658
Funding Sponsor
Department of Industry, Innovation, Science, Research and Tertiary Education, Australian Government