This thesis investigates the connection between environmental regulation, technological innovation, and export competitiveness in renewable energy equipment based on a large sample of 225 developed and developing countries from 1990 to 2012. The empirical analysis yields strong supporting evidence for the narrowly strong Porter Hypothesis as well as for the lead market theory. The results suggest that environmental regulation drives innovation and export volumes in solar- and wind-power-related goods. This is particularly the case for well-crafted (i.e. market-based, output-oriented, and clear) instruments such as carbon trading regimes. Moreover, the data show that early adopters of renewable energy support policies benefit most. Contents Review of the Porter Hypothesis and the related literature Measurement of environmental regulation Environmental regulation and renewable energy innovation Environmental regulation and renewable energy exports Target Groups Faculty and students with research interest in the fields of environmental economics, resource economics, international economics, and innovation research Practitioners interested in energy and industrial policy, competitiveness enhancement, and renewable energies The Author Dr. Henning Diederich completed his doctoral thesis under the supervision of Prof. Dr. Wilhelm Althammer at HHL Leipzig Graduate School of Management. He studied economics and management in Leipzig, Cologne, Bangalore, and San Diego and works as a top management consultant.