TY - JOUR
T1 - Dynamics of environmental policy and firm innovation
T2 - Asymmetric effects in Canada's oil and gas industries
AU - Lv, Xin
AU - Qi, Yufei
AU - Dong, Weijia
N1 - Publisher Copyright:
© 2018 Elsevier B.V.
PY - 2020/4/10
Y1 - 2020/4/10
N2 - Considering that Canada joined and then withdrew from the Kyoto Protocol, we assess the impact of the dynamics of Canada's environmental policy on the general innovation and environmental innovation of oil and gas firms. This study compensates for the shortcomings of the Porter hypothesis, which features no discussion of the influence of a loosened environmental policy on innovation. We highlight that the quantity and quality of innovation can be measured using the numbers of patents and citations of patents as proxy variables. We find that the dynamics of Canada's environmental policy have an asymmetric impact on oil and gas firms' innovation; strict policy promotes firm innovation and loose regulation reduces firm innovation, with the positive effect of strict policy being stronger than the negative effect of loose policy. In addition, environmental policy has a strong impact on environmental innovation. A loosened environmental policy increases the number of environmental patents but reduces the number of citations of environmental patents.
AB - Considering that Canada joined and then withdrew from the Kyoto Protocol, we assess the impact of the dynamics of Canada's environmental policy on the general innovation and environmental innovation of oil and gas firms. This study compensates for the shortcomings of the Porter hypothesis, which features no discussion of the influence of a loosened environmental policy on innovation. We highlight that the quantity and quality of innovation can be measured using the numbers of patents and citations of patents as proxy variables. We find that the dynamics of Canada's environmental policy have an asymmetric impact on oil and gas firms' innovation; strict policy promotes firm innovation and loose regulation reduces firm innovation, with the positive effect of strict policy being stronger than the negative effect of loose policy. In addition, environmental policy has a strong impact on environmental innovation. A loosened environmental policy increases the number of environmental patents but reduces the number of citations of environmental patents.
KW - Environmental policy
KW - Firm innovation
KW - Oil and gas industries in Canada
UR - http://www.scopus.com/inward/record.url?scp=85077509642&partnerID=8YFLogxK
U2 - 10.1016/j.scitotenv.2019.136371
DO - 10.1016/j.scitotenv.2019.136371
M3 - Article
C2 - 31931196
AN - SCOPUS:85077509642
SN - 0048-9697
VL - 712
JO - Science of the Total Environment
JF - Science of the Total Environment
M1 - 136371
ER -