Determinants of environmental investments: testing the structural model

The main purpose of this study is to provide the needed additional quantitative evidence regarding the introduction of environmental technologies, and to increase the possibility for generalization and thus policy application of conclusions. To achieve that purpose, a conceptual model is developed, and then tested on a large database of firms from various industries with the use of structural equation modeling. The results show that policy measures, past environmental investments, the importance of environmental technologies for customers and the firm performance have a positive effect on environmental investments. Furthermore, the results show that policy measures are a second-order three-factor construct.