The Impact of Environmental Subsidy on Adoption and R&D Environmental Investment

Marianna Marino, Claudia Pellegrin
2016
Report or working paper

This article is an empirical evaluation of the effects of a public environmental subsidy for technology adoption on environmental adoption (direct effect) and R&D investment (indirect effect), in a sample of Dutch non-service private companies over the 2006-2009 period. Combining information from surveys on the firm production and environmental costs, and by means of a continuous treatment matching approach, we are able to identify, for several subsidy amounts, whether an increase in such amounts may raise the levels or first differences in environmental technology adoption and R&D investment. We find negligible or significant crowding-out effects for both types of environmental investment, when controlling for firm invariant unobservables. Thus, our findings appear to suggest a serious re-modulation of the public policy tool under analysis, in terms of both the amounts provided and the firms targeted.

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Marianna Marino, Claudia Pellegrin
2016
Report or working paper

Abstract

Official source

https://infoscience.epfl.ch/record/215752?ln=en

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Related concepts (5)

Public policy

Public policy is an institutionalized proposal or a decided set of elements like laws, regulations, guidelines, and actions to solve or address relevant and real-world problems, guided by a conception and often implemented by programs. The implementation of public policy is known as public administration. Public policy can be considered to be the sum of a government's direct and indirect activities and has been conceptualized in a variety of ways. They are created and/or enacted on behalf of the public typically by a government.

Investment

Investment is traditionally defined as the "commitment of resources to achieve later benefits". If an investment involves money, then it can be defined as a "commitment of money to receive more money later". From a broader viewpoint, an investment can be defined as "to tailor the pattern of expenditure and receipt of resources to optimise the desirable patterns of these flows". When expenditure and receipts are defined in terms of money, then the net monetary receipt in a time period is termed as cash flow, while money received in a series of several time periods is termed as cash flow stream.

Empirical research

Empirical research is research using empirical evidence. It is also a way of gaining knowledge by means of direct and indirect observation or experience. Empiricism values some research more than other kinds. Empirical evidence (the record of one's direct observations or experiences) can be analyzed quantitatively or qualitatively. Quantifying the evidence or making sense of it in qualitative form, a researcher can answer empirical questions, which should be clearly defined and answerable with the evidence collected (usually called data).