Bialek, Sylwia; Weichenrieder, Alfons J. - In: Environmental and Resource Economics 80 (2021) 3, pp. 603-636
Strict environmental regulation may deter foreign direct investment (FDI). The paper develops the hypothesis that … regulation predominantly discourages FDI that is conducted as Greenfield investment rather than mergers and acquisitions (M …&A). The hypothesis is tested with German firm-level FDI data. Empirically, stricter regulation reduces new Greenfield projects …