Title

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

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Link to publisher version (DOI)

http://dx.doi.org/10.1177/0312896220976750