Analysing the determinants of environmental technology investments. A panel-data study of Spanish industrial sectors

The aim of this paper is to empirically assess the determinants of environmental technology investments in the Spanish industrial sectors with the help of panel data econometric techniques. The paper confirms the relevance of the stringency of environmental regulation to explain overall investment patterns in environmental technologies. These investments are also positively related to human and physical capital intensity and R&D intensity, and negatively related to the export intensity of sectors. Furthermore, the study shows that the determinants for investments are likely to differ between environmental technology types (i.e., end-of-pipe versus cleaner technologies).