RT Journal Article SR Electronic T1 Environmental Regulations and Technological Change in the Offshore Oil and Gas Industry JF Land Economics JO Land Econ FD University of Wisconsin Press SP 303 OP 319 DO 10.3368/le.81.2.303 VO 81 IS 2 A1 Managi, Shunsuke A1 Opaluch, James J. A1 Jin, Di A1 Grigalunas, Thomas A. YR 2005 UL http://le.uwpress.org/content/81/2/303.abstract AB Technological progress can play a key role in raising standards of living while improving environmental quality. Well-designed environmental regulations encourage innovation, while poorly designed regulations can inhibit progress. The Porter hypothesis goes further to suggest that tougher environmental regulations could spur innovation, leading to increased productivity of market outputs. We apply frontier production analysis to measure various components of total factor productivity within a joint production model, which considers both market and environmental outputs. We test the causality between technological innovation and environmental regulation and find support for a recast version of the Porter hypothesis. (JEL O38, L71)