Does green corporate investment crowd out other business investment?
Publikation: Beiträge in Zeitschriften › Zeitschriftenaufsätze › Forschung › begutachtet
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Does green corporate investment crowd out other business investment? / Weche, John P.
in: Industrial and Corporate Change, Jahrgang 28, Nr. 5, 01.10.2019, S. 1279-1295.Publikation: Beiträge in Zeitschriften › Zeitschriftenaufsätze › Forschung › begutachtet
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TY - JOUR
T1 - Does green corporate investment crowd out other business investment?
AU - Weche, John P.
PY - 2019/10/1
Y1 - 2019/10/1
N2 - 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 (EPI) 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 crowding-out of other business investment through EPI in general as well as its subcategories of add-on measures and investments in renewable energy, whereby add-on measures bear the greatest potential for a deterioration of productivity.
AB - 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 (EPI) 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 crowding-out of other business investment through EPI in general as well as its subcategories of add-on measures and investments in renewable energy, whereby add-on measures bear the greatest potential for a deterioration of productivity.
KW - Economics
UR - http://www.scopus.com/inward/record.url?scp=85083644624&partnerID=8YFLogxK
U2 - 10.1093/icc/dty056
DO - 10.1093/icc/dty056
M3 - Journal articles
AN - SCOPUS:85083644624
VL - 28
SP - 1279
EP - 1295
JO - Industrial and Corporate Change
JF - Industrial and Corporate Change
SN - 0960-6491
IS - 5
ER -