Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/126543
Authors: 
Weche, John P.
Year of Publication: 
2015
Series/Report no.: 
University of Lüneburg Working Paper Series in Economics 350
Abstract: 
Empirical studies on the link between green investment and other business investment at the firm level either focus on innovation specific types of investment or fail to consider the simultaneity of investment decisions. The analysis to be presented here offers a broad focus on different types of environmental protection investment and explicitly considers simultaneity issues, using newly created panel data for German manufacturing firms. Germany is an ideal case for testing the crowding-out hypothesis, due to its high level of environmental regulation and a significant presence of command-and-control style measures, which are especially under debate as a source of crowding-out. The estimation of a behavioral investment model supports a crowdingout of other business investment through environmental protection investment in general as well as its subcategories of add-on measures and investments in renewable energy. However, only the latter subcategory causes a crowding-out at the industry level.
Subjects: 
green investment
business investment
renewable energy
crowding-out
manufacturing
Germany
JEL: 
O32
O33
Q42
Q55
Document Type: 
Working Paper

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