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On the green and innovative side of trade competitiveness? The impact of environmental policies and innovation on EU exports

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  • Costantini, Valeria
  • Mazzanti, Massimiliano

Abstract

This paper aims at exploring how the export competitiveness of the European Union has been affected by environmental regulation and innovation. Starting from the Porter idea that environmental policies may foster international competitiveness by inducing technological innovation. We test both the strong and narrowly strong versions of the Porter hypothesis, in order to understand if such a virtuous cycle is confined into the environmental goods sector (respecting the narrow criterion) or it spreads out through the whole economic system. For this purpose we adopt a theoretically based gravity model applied to the export dynamics of five aggregated manufacturing sectors classified by their technological or environmental content.

Suggested Citation

  • Costantini, Valeria & Mazzanti, Massimiliano, 2012. "On the green and innovative side of trade competitiveness? The impact of environmental policies and innovation on EU exports," Research Policy, Elsevier, vol. 41(1), pages 132-153.
    • Handle: RePEc:eee:respol:v:41:y:2012:i:1:p:132-153
    DOI: 10.1016/j.respol.2011.08.004
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    More about this item

    Keywords

    Environmental policies; Porter hypotheses; Technological innovation; Export performance; Gravity model; European Union;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • 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

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