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.
Highlights
Bioenergy technologies have been widely recognized as crucial for achieving environmentally sound and sustainable development in that they may meet all three areas of energy demand, namely heat, electricity, and transport fuels and chemicals [1]
Motivated by these matters often ignored in the literature, the current study investigates how the efficiency of government policy affects the export of bioenergy technologies
This study examined the relationship between the eco-efficiency of government policy and export performance in the bioenergy technology sector, using panel data for 16 OECD countries between 1995 and 2012
Summary
Bioenergy technologies have been widely recognized as crucial for achieving environmentally sound and sustainable development in that they may meet all three areas of energy demand, namely heat, electricity, and transport fuels and chemicals [1]. According to Costantini et al [26] and Johnstone et al [27], export growth is triggered by innovation spurred by policy support on both the supply and the demand sides, which means that government policy (policy input) is a highly resilient catalyst that forces firms to make major efforts to foster innovation (policy output) when the government continuously provides incentives and creates favorable conditions for innovation in the RE technology sector This fact suggests that the effects of policy support on export performance need to be examined by considering both policy support (policy input) and innovation triggered by policy support at the same time.
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