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The effect of environmental innovations on employment changes: an econometric analysis

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  • Klaus Rennings
  • Andreas Ziegler
  • Thomas Zwick

Abstract

This paper examines the determinants of employment changes due to an environmental innovation of an establishment. The data stem from telephone surveys in five European countries. 1594 interviews have been realized with environmentally innovative establishments representing the European industry and service sector. Based on results of discrete choice models, we show that if the most important environmental innovation is a product or service innovation it has a significantly positive effect on the probability of an increase in employment compared with the probability of no noticeable change. In contrast, if the most important environmental innovation is an end‐of‐pipe innovation it has a significantly positive influence on employment decrease. Methodologically, we consider the multinomial logit model and several multinomial probit models. We find that the estimates of the parameters of the explanatory variables are very similar in the different approaches. Copyright © 2004 John Wiley & Sons, Ltd and ERP Environment.

Suggested Citation

  • Klaus Rennings & Andreas Ziegler & Thomas Zwick, 2004. "The effect of environmental innovations on employment changes: an econometric analysis," Business Strategy and the Environment, Wiley Blackwell, vol. 13(6), pages 374-387, November.
    • Handle: RePEc:bla:bstrat:v:13:y:2004:i:6:p:374-387
    DOI: 10.1002/bse.424
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    References listed on IDEAS

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