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The Effects of the Regional Environmental Regulation on Regional Productivity of the Manufacturing Industries: By Testing of the Porter Hypothesis

  • Journal of Regional Studies and Development
  • Abbr : JRSD
  • 2012, 21(1), pp.193-217
  • Publisher : Institute for Poverty Alleviation and International Development: IPAID
  • Research Area : Social Science > Area Studies > Regional Studies in general > Comparative / Statistical Regional Studies

Chuhwan Park 1 정영근 1

1영남대학교

Accredited

ABSTRACT

In this paper, we analyzed the effects of the environmental regulation on regional manufacturing industry's productivity for the 6 specific regions in Korea by using Panel approaches with the test of the Porter hypothesis. The result shows that the emissions such as air pollution effect on regional industries through the negative external effect. Since it was impossible to internalize perfectly external effect by environmental regulation, the regulation affects the negative effect by burdening regulation cost to firms. That result is because the innovation of the environmental R & D is still insignificant by environmental regulation. That implies Korea needs to invest environmental technology and R&D for consistent political management about company’s environmental pollution protecting facilities investments and future R&D.

Citation status

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