Clean and Productive? Evidence from the German Manufacturing Industry

20 Pages Posted: 29 Nov 2008

See all articles by Christoph Böhringer

Christoph Böhringer

University of Oldenburg - Economic Policy; Centre for European Economic Research (ZEW)

Ulf Moslener

Frankfurt School of Finance & Management gemeinnützige GmbH

Ulrich Oberndorfer

ZEW – Leibniz Centre for European Economic Research

Andreas Ziegler

Center for European Economic Research (ZEW)

Date Written: 2008

Abstract

We analyze the productivity effects of environmental (green) investment as well as of environmental expenditures and energy expenditures. For this purpose, we follow a production function approach where we account for these investment and expenditure categories as inputs. Based on a panel dataset for the German manufacturing industry between 1996 and 2002 we find that both environmental and energy expenditures do not contribute to production growth. In contrast, environmental investment positively impinges upon production growth as a productivity driver. We thus conclude that environmental regulation should stimulate investment in order to be compatible with economic goals such as productivity.

Keywords: environmental performance, environmental regulation, productivity

JEL Classification: Q28, Q58, D24

Suggested Citation

Bohringer, Christoph and Moslener, Ulf and Oberndorfer, Ulrich and Ziegler, Andreas, Clean and Productive? Evidence from the German Manufacturing Industry (2008). ZEW - Centre for European Economic Research Discussion Paper No. 08-091. Available at SSRN: https://ssrn.com/abstract=1307649 or http://dx.doi.org/10.2139/ssrn.1307649

Christoph Bohringer

University of Oldenburg - Economic Policy ( email )

Centre for European Economic Research (ZEW) ( email )

D-68161 Mannheim
Germany
+49 6211235200 (Phone)
+49 6211235226 (Fax)

Ulf Moslener (Contact Author)

Frankfurt School of Finance & Management gemeinnützige GmbH ( email )

Adickesallee 32-34
Frankfurt am Main, 60322
Germany

Ulrich Oberndorfer

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Andreas Ziegler

Center for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

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