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Clean and productive? Empirical evidence from the German manufacturing industry

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

Abstract

In view of the controversial policy debate on “green” growth and corresponding stimulus packages we empirically investigate the production effects of environmental investment as well as of environmental and energy expenditures. Using a panel dataset of German manufacturing sectors our econometric analysis identifies a positive impact of environmental investment on production growth. In contrast, our estimation results cannot support the hypothesis of positive production impacts induced by environmental or energy expenditures. We thus conclude that environmental regulation should in particular stimulate environmental investment in order to be compatible with the pursuit of production growth.

Suggested Citation

  • Böhringer, Christoph & Moslener, Ulf & Oberndorfer, Ulrich & Ziegler, Andreas, 2012. "Clean and productive? Empirical evidence from the German manufacturing industry," Research Policy, Elsevier, vol. 41(2), pages 442-451.
    • Handle: RePEc:eee:respol:v:41:y:2012:i:2:p:442-451
    DOI: 10.1016/j.respol.2011.10.004
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    More about this item

    Keywords

    Environmental expenditures; Environmental investment; Environmental regulation;
    All these keywords.

    JEL classification:

    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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