Business, Management and Accounting
4 years ago

Competition Drives Green Innovation in Response to Stricter Environmental Regulations

SSRN Electronic Journal
Do Environmental Regulations Do More Harm Than Good? Evidence from Competition and Innovation
Rui Dai, Rui Duan, Lilian Ng

Paper Summary

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Competition drives companies to innovate greener when faced with strict environmental regulations. Firms in areas with tougher rules on pollution are more likely to come up with eco-friendly solutions. This helps them stand out in the market and attract more customers. Companies that adapt to these regulations see growth in market share, profit margin, and overall success.