Export Behaviour and Green Investment Decisions: Firm-Level Evidence from Central and Eastern Europe

Session

Management Business and Economy

Description

This study investigates the impact of export behaviour on firms' environmental practices in Central and Eastern European countries. Utilizing data from Enterprise Surveys conducted by the EBRD, EIB, and World Bank, it explores whether exporters are more likely to engage in green investments compared to their non-exporting counterparts. The findings reveal that export propensity is strongly associated with a higher likelihood of undertaking energy and pollution control measures, particularly when firms invest in multiple areas such as climate-friendly energy generation, energy management, and air pollution control. Operational efficiency investments also demonstrate a significant positive relationship with export propensity. These results highlight the key role of export activities in driving environmental sustainability in the region, with exporting firms more inclined to adopt comprehensive green investment strategies. The study contributes to the growing literature on trade and environmental performance, offering new insights into how export status influences firm-level environmental outcomes in transition economies.

Keywords:

Export Propensity, Green Investment, Environmental Performance, CEE

Proceedings Editor

Edmond Hajrizi

ISBN

978-9951-982-15-3

Location

UBT Kampus, Lipjan

Start Date

25-10-2024 9:00 AM

End Date

27-10-2024 6:00 PM

DOI

10.3107/ubt-ic.2024.17

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Oct 25th, 9:00 AM Oct 27th, 6:00 PM

Export Behaviour and Green Investment Decisions: Firm-Level Evidence from Central and Eastern Europe

UBT Kampus, Lipjan

This study investigates the impact of export behaviour on firms' environmental practices in Central and Eastern European countries. Utilizing data from Enterprise Surveys conducted by the EBRD, EIB, and World Bank, it explores whether exporters are more likely to engage in green investments compared to their non-exporting counterparts. The findings reveal that export propensity is strongly associated with a higher likelihood of undertaking energy and pollution control measures, particularly when firms invest in multiple areas such as climate-friendly energy generation, energy management, and air pollution control. Operational efficiency investments also demonstrate a significant positive relationship with export propensity. These results highlight the key role of export activities in driving environmental sustainability in the region, with exporting firms more inclined to adopt comprehensive green investment strategies. The study contributes to the growing literature on trade and environmental performance, offering new insights into how export status influences firm-level environmental outcomes in transition economies.