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Clean and Productive? Evidence from the German Manufacturing Industry

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  • Oberndorfer, Ulrich
  • Moslener, Ulf
  • Böhringer, Christoph
  • Ziegler, Andreas

Abstract

We analyze the productivity effects of environmental (green) investment as well as of environmental expenditures and energy expenditures. For this purpose, we follow a production function approach where we account for these investment and expenditure categories as inputs. Based on a panel dataset for the German manufacturing industry between 1996 and 2002 we find that both environmental and energy expenditures do not contribute to production growth. In contrast, environmental investment positively impinges upon production growth as a productivity driver. We thus conclude that environmental regulation should stimulate investment in order to be compatible with economic goals such as productivity. --

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Bibliographic Info

Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 08-091.

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Date of creation: 2008
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Handle: RePEc:zbw:zewdip:7433

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Keywords: environmental performance; environmental regulation; productivity;

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Cited by:
  1. Giulio Cainelli & Massimiliano Mazzanti & Sandro Montresor, 2012. "Environmental Innovations, Local Networks and Internationalization," Industry and Innovation, Taylor & Francis Journals, vol. 19(8), pages 697-734, November.

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