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Has regulation driven innovation? The case of Biotek
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The Portuguese Pulp Industry is a large employer for local communities, making it a large emitter. This report builds on the case of Biotek, for which stringent regulation in permits forced it to innovate. This case supports the weak version of the Porter Hypothesis, highlighting the conditions that led to this innovation, also prompting how future regulations can improve sectorial environmental performance. Moreover, the impact of this regulation-induced innovation on the water quality of Biotek’s discharge receptor –Tagus River –is analyzed. No evidence was found of relevant impact after the regulation was enforced. Moreover, insufficient historical data prevents any conclusions.
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Technological innovation Environmental regulation Pulp and paper industry Water discharges