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Abstract ▼ AI-Helper

The hypothesis suggested by Porter and van der Linde claims that innovating firms operate in a dynamic competitive situation which allows global diffusion of environmental-friendly technologies. Therefore, countries that are subjects to more stringent environmental regulations may become net exporte...

The hypothesis suggested by Porter and van der Linde claims that innovating firms operate in a dynamic competitive situation which allows global diffusion of environmental-friendly technologies. Therefore, countries that are subjects to more stringent environmental regulations may become net exporters of environmental technologies. In the context of Porter hypothesis, this study investigates the impact of importing countries' environmental regulation on Korea and Japan's export flows of technologies for renewable energies and energy efficiency by estimating the gravity equation. The estimation result shows that : (1) our results are consistent with the Porter hypothesis where environmental regulation represents a significant source of comparative advantages, (2) Korea's export flows of technologies for renewable energies and energy efficiency with respect to the importing countries' environmental regulation are more sensitive than Japan's, and (3) the adverse relationship between export flows and importers' environmental stringency in developing countries does not hold in the renewable energies and energy efficiency related sector.

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