Template-type: ReDif-Paper 1.0 Author-Name: Kriechel Ben Author-Name: Ziesemer Thomas Author-workplace-name: MERIT Title: The Environmental Porter Hypothesis as a Technology Adoption Problem? Abstract: The Porter Hypothesis postulates that the costs of compliance with environmental standards may be offset by adoption of innovations they trigger. We model this hypothesis using a game of timing of technology adoption. We show that times of adoption are earlier the higher the non-adoption tax. The environmental tax turns the preemption game with low profits into a game with credible precommitment yielding high profits (pro-Porter). If there is a precommitment game without environmental taxes, the introduction of a tax leads to lower profits (anti-Porter). Keywords: economics of technology ; Series: Research Memoranda Creation-Date: 2005 Number: 008 File-URL: http://digitalarchive.maastrichtuniversity.nl/fedora/objects/guid:7da2cef6-a8cc-4c7f-9cf0-3086e92e2f2f/datastreams/ASSET1/content File-Format: application/pdf File-Size: 356699 Handle: RePEc:unm:umamer:2005008