Empirical Methodology and Findings
This chapter investigates the impact of the regulatory stringency index constructed in Chap. 5 on patenting in Germany, Brazil, India, and China from 1985 to 2010. The index is based on an aggregation of all relevant environmental regulations that were adopted in these countries since 1985. The index (core explanatory variable) is a good measure of strictness of environmental policies and regulations because it relies on all (incremental) interventions, i.e., vehicular emissions, fuel consumption level, and the technological developments to meet these requirements.
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