Well, this is basically the summary of the Porter Hypothesis, dating back to a 1995 paper co-authored by Harvard economist Michael Porter. Porter and the co-author Class van der Linde argued that "properly crafted environmental regulations can convey a competitive advantage to firms that are forced to comply with the rules."

It is not an easy question and it hasn't been established whether it is true or false yet. It has come under considerable attack in the last 13 years, where the argument against it is that companies will find the ways to cut costs or increase profits in a free market whether or not rules are in place.

Perhaps it should be thought of as a goal, rather than something that is unimpeachably true.

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