Eco-Efficiency of Government Policy and Exports in the Bioenergy Technology Market

Abstract

This study investigates how the eco-efficiency of government policy-continuously implementing innovation-friendly policy based on both environmental and economic considerations-affects the export performance of bioenergy technologies, using panel data from 16 countries during 1995-2012. Various heterogeneous panel framework tests are conducted. Our panel unit root and co-integration tests, which allow for cross-sectional dependence in the panel, show that the time series data on the eco-efficiency of public support, exports, and gross domestic product (GDP) are integrated and co-integrated. We set up a panel vector error correction model (VECM) to empirically test the casual relationship among the variables examined. The long-term parameters of the variables were calculated using dynamic ordinary lease squares (DOLS). Panel difference generalized method of moments (GMM) estimations were conducted to test the short-term relationship among the variables. The results of this study therefore show that the eco-efficiency of government policy positively influences export performance in the long run, but not in the short run. The presented findings also indicate that efficiently implemented government policy plays a crucial role in achieving environmentally sound and sustainable development, showing path dependence among the eco-efficiency of government policy, exports, and GDP. We finally suggest policy implications based on the results.

Interrelationship between international trade and environmental performance: Theoretical approaches and indicators for sustainable development

“…Moreover, 51.35% of microeconomic studies confirm that internationalization had a positive effect on EP. But not only can internationalization positively influence EP, four articles demonstrate that companies with greater EP can also gain competitive advantages in the international market (Al‐Ghwayeen & Abdallah, 2018; Bellesi et al, 2005; Galdeano‐Gomez, 2010; Sung et al, 2017). In this sense, Rodriguez‐Rodriguez et al (2012) and Antonietti and Marzucchi (2013) demonstrate a bidirectional relationship between EP and international trade.…”

A Review of Eco-Innovations and Exports Interrelationship, with Special Reference to International Agrifood Supply Chains

“…Studies in which eco-innovation influences international supply chain Lanjouw & Mody [65] USA (+) Placet et al [90] USA (+) Greaker [72] Norway (+) Orsato [60] Australia (+) Knackfuss [80] Germany (+) Ford [69] UK (+) Foresti & Trenti [96] Italy (+) Fradley & Rampersad [75] Austria (+) Köhler et al [81] Germany (+) Romih & Oplotnik [102] Slovenia (+) Ghazal. et al [103] UAE (+) Hwang & Kim [14] South Korea (+) Sung [120] South Korea (+) Brunel [9] USA (+) Costantini [6] France/Italy (+) Ouyang & You [25] China (+)…”