@article{Franco:162419,
      recid = {162419},
      author = {Franco, Chiara and Marin, Giovanni},
      title = {The Effect of Within-Sector, Upstream and Downstream  Energy Taxes on Innovation and Productivity},
      address = {2013-12},
      number = {830-2016-55280},
      series = {ERM},
      pages = {31},
      year = {2013},
      abstract = {The aim of the paper is to investigate the effect of  environmental stringency on innovation and productivity  using a cross-country panel made up of 7 European countries  for 13 manufacturing sectors over the years 2001-2007. This  research topic goes under the heading of Porter Hypothesis  (PH) of which different versions have been tested. We take  into consideration both the strong and the weak versions  while adding some peculiarities to the analysis. Firstly,  we assess the role played by a specific environmental  regulation, that is energy taxes, that have rarely been  empirically tested as factors that can favour PH hypothesis  to be verified. Secondly, we do not consider, within the  same framework, only the effect of energy taxes in the same  sector (within-sector), but also the role played by energy  taxes in upstream and downstream sectors in terms of  input-output relationship. Thirdly, we test these  relationships also “indirectly” by verifying whether  innovation can be one of the channels through which higher  sectoral productivity can be reached. The main findings  suggest that downstream stringency is the most relevant  driver for innovation and that most of the effect of  regulation on productivity is direct, while the part of the  effect mediated by induced innovation is not statistically  significant.},
      url = {http://ageconsearch.umn.edu/record/162419},
      doi = {https://doi.org/10.22004/ag.econ.162419},
}