THE PORTER HYPOTHESIS, PROPERTY RIGHTS, AND INNOVATION OFFSETS: THE CASE OF SOUTHWEST MICHIGAN PORK PRODUCERS
The Porter Hypothesis relates the effects of environmental regulation on (a) technological innovation and (b) economic performance. Specifically, it asserts that innovation offsets can occur. These are a type of technological change that will "partially or more than fully offset the costs of complying with environmental regulation" (Porter and van der Linde, 1995, p. 98).