This paper examined the two aspects of environmental policy stringency on the exports of Korean environmental goods: 1. The effects of a trading partner’s environmental policy stringency; and 2. The effects of Korea’s environmental policy stringency. Based on panel data for OECD and BRIICS countries from 2002 to 2012, we employed a modified gravity model where an environmental policy stringency (EPS) index (OECD) served as an indicator for the level of environmental policy stringency. Our main findings are summarized as follows: 1. The environmental policy stringency of a trade partner has a positive effect on exports of environmental goods from Korea ; 2. Korea’s environmental policy stringency has a decisive influence on the increase in the export of Korean environmental goods, which is consistent with the Porter Hypothesis. In addition, Korea’s environmental policy is more influential than the effect of a trade partner’s environmental policies. Stringent environmental policies should therefore be promoted to strengthen the competitiveness of Korea's environmental goods and a certain level of stringency should be maintained for environmental industries.

[Key Words] Environmental Policy Stringency, Korea Export Competitiveness, Porter Hypothesis, Exports of Environmental Goods, Revealed Comparative Advantage