Abstract:
A wide spread concern can be witnessed among businessmen, policy makers and academics about the role of environmental regulations on innovative responses. In this study, we examine whether these regulations enhance or hinder R&D expenditure using the data for eight major U.S industries for the period 1982 to 1992. We find no strong evidence to support the view that environmental regulations proxied by abatements costs have any significant impact on the pollution abatement technology.
