Environmental Policy and Renewable Energy Equipment Exports: An Empirical Analysis

This thesis investigates the connection between
environmental regulation, technological innovation, and export competitiveness
in renewable energy equipment based on a large sample of 225 developed and
developing countries from 1990 to 2012. The empirical analysis yields strong
supporting evidence for the narrowly strong Porter Hypothesis as well as for
the lead market theory. The results suggest that environmental regulation
drives innovation and export volumes in solar- and wind-power-related goods.
This is particularly the case for well-crafted (i.e. market-based,
output-oriented, and clear) instruments such as carbon trading regimes.
Moreover, the data show that early adopters of renewable energy support
policies benefit most.