IDEAS home Printed from https://ideas.repec.org/a/cai/jiedbu/jie_pr1_0137.html
   My bibliography  Save this article

Investment in Green Innovation: How does It Contribute to Environmental and Financial Performance?

Author

Listed:
  • Fatima Shuwaikh
  • Ramzi Benkraiem
  • Emmanuelle Dubocage

Abstract

Investment in green innovation has become a vital driver in many industries today. How green innovation contributes to a firm’s environmental and financial performance remains uncertain and there is debate about this relationship. Using data gathered from 243 firms between 2013 and 2020, our study aims to provide new evidence on this topic. Our results indicate that green innovation has a clear, positive effect on environmental and financial performance in corporations striving to achieve sustainability and environmental protection. We also find that green innovation mediates the relationship between environmental and financial performances. Based on our findings, we suggest that green innovation is a profitable strategy in the long run with a positive influence on the environmental and financial performances of a firm. Our findings are robust when tested by alternative econometric and variable specifications and offer insights to policymakers and business managers. JEL Codes: G24, O31, O34, Q51

Suggested Citation

  • Fatima Shuwaikh & Ramzi Benkraiem & Emmanuelle Dubocage, 2023. "Investment in Green Innovation: How does It Contribute to Environmental and Financial Performance?," Journal of Innovation Economics, De Boeck Université, vol. 0(2), pages 107-149.
    • Handle: RePEc:cai:jiedbu:jie_pr1_0137
    as

    Download full text from publisher

    File URL: http://www.cairn.info/load_pdf.php?ID_ARTICLE=JIE_PR1_0137
    Download Restriction: free
    File URL: http://www.cairn.info/revue-journal-of-innovation-economics-2023-2-page-107.htm
    Download Restriction: free
    ---><---

    More about this item

    Keywords

    Green Innovation; Environmental Performance; Financial Performance; Green Patents; Green Citations;
    All these keywords.

    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cai:jiedbu:jie_pr1_0137. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jean-Baptiste de Vathaire (email available below). General contact details of provider: https://www.cairn.info/revue-journal-of-innovation-economics.htm .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.