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Green Investment Strategies and Export Performance: A Firm-level Investigation

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  • Roberto Antonietti

    (Department of Economics and Management “Marco Fanno”, University of Padova, Italy)

  • Alberto Marzucchi

    (Department of International Economics, Institutions and Development (DISEIS), Catholic University of Milan, Italy and INGENIO (CSIC-UPV), Spain)

Abstract

In this paper we empirically investigate the relationship between investments in environmentally-oriented equipment and firms’ export performance. Drawing on Porter hypothesis and firm heterogeneity theory, we adopt a structural model where first we estimate the impact of green investment strategies on the level of productive efficiency (TFP), and second we assess whether induced productivity influences the extensive and intensive margin of exports. Relying on a rich firm-level dataset on Italian manufacturing, our results show that firms with higher productivity, induced among other factors by green investment involving environmental protection and reduction in the use of raw materials, have increased commitment to, and profits from, exports, especially towards countries adopting a more stringent environmental regulatory framework. Our evidence provides a ‘green investment-based’ explanation for the link between TFP-heterogeneity and trade.

Suggested Citation

  • Roberto Antonietti & Alberto Marzucchi, 2013. "Green Investment Strategies and Export Performance: A Firm-level Investigation," Working Papers 2013.76, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2013.76
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    Cited by:

    1. Fortune Ganda & Collins C. Ngwakwe & Cosmas M. Ambe, 2015. "Profitability as a Factor That Spurs Corporate Green Investment Practices in Johannesburg Stock Exchange (JSE) Listed Firms," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 13(3 (Fall)), pages 231-252.
    2. Ghisetti, Claudia & Rennings, Klaus, 2013. "Environmental innovations and profitability: How does it pay to be green? An empirical analysis on the German innovation survey," ZEW Discussion Papers 13-073, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

    More about this item

    Keywords

    Exports; Firm Heterogeneity; Green Investment Strategy; Total Factor Productivity;

    JEL classification:

    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F18 - International Economics - - Trade - - - Trade and Environment

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