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Download Environmental Policy and Renewable Energy Equipment Exports: by Henning Diederich PDF

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By Henning Diederich

This thesis investigates the relationship among environmental legislation, technological innovation, and export competitiveness in renewable strength gear in keeping with a wide pattern of 225 built and constructing nations from 1990 to 2012. The empirical research yields robust assisting proof for the narrowly powerful Porter speculation in addition to for the lead marketplace concept. the consequences recommend that environmental law drives innovation and export volumes in sun- and wind-power-related items. this can be really the case for well-crafted (i.e. market-based, output-oriented, and transparent) tools similar to carbon buying and selling regimes. additionally, the knowledge convey that early adopters of renewable strength help guidelines gain most.

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Example text

Moreover, they refer to the Commerce Department’s Bureau of Economic Analysis’ annual report on pollution abatement and control expenditures. e. US corporations’ 1992 net expenditures exceeded USD 100 bn. They argue further that although expenditures are much easier to measure and therefore much more reliable than offsets, even large errors in offset estimation would not change the 24 Review of the Porter Hypothesis and the related literature overall picture that environmental regulation had a large and negative effect on profitability and therefore international competitiveness.

Particularly, the research focus is on the impact of design and intensity of countries’ environmental regulation on the innovativeness and consequently competitiveness of their domestic renewable energy equipment industries. The remainder of the introduction is structured as follows. 1 illustrates the recent progress in the diffusion of renewable energy technologies and the economic importance of this industry sector. 2 introduces environmental regulation and technological change as driving forces behind these trends.

Empirical research on the Porter Hypothesis 27 Jaffe & Palmer (1997) use a lag of one year to model the impact of their regulation indicators on research activity. Many researchers have successfully applied this approach in later empirical studies. Kneller & Manderson (2012) and Rubashkina, Galeotti, & Verdolini (2015) are among those more recent empirical studies on the weak Porter Hypothesis which apply the lag structure proposed by Jaffe & Palmer (1997). Kneller & Manderson (2012) use a dynamic linear regression model with fixed effects for industry affiliation and time to estimate the impact of lagged PACE and lagged R&D investments on current R&D investments.

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