# Russian Companies' Motivations for Making Green Investments
## 3 Evaluation Method and Data
### Regression Models  
Identification of motivations of Russian business for green investments was carried out using a multiple regression model based on panel data. The regression equation was assessed using the least squares method and the estimated generalized least squares method (EGLS) for the random effects model. The selection of independent variables was carried out step by step, excluding the least significant variables or if there was a strong correlation between independent variables (multicollinearity). The regression equations were evaluated as a pooled model, fixed effects model and a random effects model. The validity of the estimates of the included individual effects were determined using a fixed effects test ([PERSON], 2005) and the Hausman test for correlated random effects ([PERSON], 1978).  
As a result, the following regression models were obtained for evaluation:Model 1:  
\[\begin{split}& GreenInv_{it}=c+\beta_{1}*Export_{it}+\beta_{2}*FDI_{it}+ \beta_{3}*IndProdMining_{it}+\beta_{4}\\ &*IndProdManuf\,aturing_{it}+\beta_{5}*IndProdElectrAndWater_{it}+ \beta_{6}\\ &*\,\mathit{BudSpendEnvir}_{it}+\beta_{7}*\mathit{PayNegEnvir Impact}_{it}+\beta_{8}*CO_{2_{it}}+\beta_{9}\\ &*\,\mathit{Wastewater}_{it}+\beta_{10}*Fixed\,\mathit{Assets}_{it}+ \varepsilon_{it}\end{split} \tag{1}\]  
Model 2:  
\[\begin{split}& Inv_{it}=c+\beta_{1}*Export_{it}+\beta_{2}*FDI_{it}+ \beta_{3}*IndProdMining_{it}+\beta_{4}*IndProdManuf\,aturing_{it}+\beta_{5}\\ &*\,\mathit{IndProdElectrAndWater_{it}+\beta_{6}*\mathit{BudSpendEnvir }_{it}+\beta_{7}*\mathit{PayNegEnvirImpact}_{it}\\ &+\beta_{8}*CO_{2_{it}}+\beta_{9}*\mathit{Wastewater}_{it}+ \beta_{10}*Fixed\,\mathit{Assets}_{it}+\varepsilon_{it}\end{split} \tag{2}\]  
where _GreenInv_ means investments in fixed assets aimed at environmental protection and rational use of natural resources, million rubles in 2015 prices;  
_Inv_--investments in fixed capital, million rubles in 2015 prices;  
_Export_--goods of own production that were shipped for export to foreign countries, million rubles in 2015 prices;  
_FDI_--Accumulated Foreign Direct Investment in the subjects of the Russian Federation, million rubles in 2015 prices;  
_IndProdMining_--industrial production volumes in the subjects of the Russian Federation by type of activity \"Mining\", million rubles in 2015 prices;  
_IndProdManufacturing_--volumes of industrial production in the subjects of the Russian Federation by type of activity \"Manufacturing\", million rubles in 2015 prices;  
_IndProdElectrAndWater_--volumes of industrial production in the subjects of the Russian Federation by type of activity \"Production and distribution of electricity, gas and water\", million rubles in 2015 prices;  
_BudSpendEnvir_--expenditures of the consolidated budget of a subject of the Russian Federation for environmental protection, million rubles in 2015 prices;  
_PayNegEnvirImpact_--accumulation of funds in the consolidated budget of a subject of the Russian Federation in the budget line \"payment for negative environmental impact\", million rubles in 2015 prices;  
_CO_2--emissions of pollutants into the atmospheric air from stationary sources, thousand tons;  
_Wastewater_--discharge of polluted wastewater into surface water bodies, million cubic meters;  
_FixedAssets_--the cost of fixed assets, taking into account depreciation, million rubles in 2015 prices;  
_\(\varepsilon_{it}\)_--random error.