@article{Tsai:331005,
      recid = {331005},
      author = {Tsai, Diana},
      title = {Environmental Policy and Technological Innovation:  Evidence from Taiwan Manufacturing Industries},
      address = {2002},
      pages = {30},
      year = {2002},
      note = {Presented at the 5th Annual Conference on Global Economic  Analysis, Taipei, Taiwan},
      abstract = {Michael Porter suggested that the traditional trade-off  between environmental regulation and competitiveness may  have overestimated environmental compliance costs,  neglected innovation offsets, and disregarded the affected  industry's initial competitiveness. We examine the stylized  facts regarding environmental abatement investments and  innovation in various industries. This paper examines the  role of market innovation and the incurred necessary  adjustments in explaining the apparent contradiction  between markets and the environment. It argues that market  innovation can serve as a powerful tool of environmental  policy operating together with a competitive market  environment. To capture the market innovation and the  incurred adjustments for enterprises in complying with the  environmental standard requires a model with dynamic  adjustment features. This paper applies an empirical  industry dynamic model to explicitly incorporate associated  adjustments in analyzing the efficiency of the abatement  investment by industry. By investigating abatement  investments in various industries, we analyze the  innovation and adjustment effects of environmental policy.  We apply the empirical industry dynamic model to Taiwan  manufacturing industries and investigate how well the  double-focus of industry efficiency and environmental  perpetual development has been developed in the process of  industrialization. The Taiwan manufacturing industries were  chosen since it has been characterized by increasing  innovation and investment in R&D, especially the rapid  innovation in electronics, computers, materials, and  processes which had marked as the source of the substantial  growth before Asia financial crisis. The industries with  higher innovation spillover effects and lower adjustment  effects are identified to effectively enhance optimal  policy in aiming at both economic efficiency and  environmental perpetual development for Taiwan's balanced  growth.},
      url = {http://ageconsearch.umn.edu/record/331005},
}