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What triggers environmental management and innovation? Empirical evidence for Germany

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Author Info
Frondel, Manuel
Horbach, Jens
Rennings, Klaus

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Abstract

It is frequently hypothesized that environmental management systems (EMSs) may improve firms' environmental innovation performance. Whether this hypothesis is true is as critical for environmental policy as questions pertaining to the relevant incentives for (1) a firm's voluntary adoption of an EMS and (2) its environmental innovation behavior. Based on ample empirical evidence for German manufacturing, this paper addresses the simultaneity of these issues on the basis of a recursive bivariate probit model that explores the hypothesis that a facility's decision on innovation activities is correlated with the decision on EMS adoption. Our empirical results, indicating that environmental innovation activities are not associated with EMS implementation nor any other single policy instrument, reflect the perceptions of the survey respondents and, hence, should be interpreted as correlations rather than causal relationships. According to these perceptions, innovation behavior seems to be mainly correlated with the stringency of environmental policy.

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Publisher Info
Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 66 (2008)
Issue (Month): 1 (May)
Pages: 153-160
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Handle: RePEc:eee:ecolec:v:66:y:2008:i:1:p:153-160

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Nakamura, Masao & Takahashi, Takuya & Vertinsky, Ilan, 2001. "Why Japanese Firms Choose to Certify: A Study of Managerial Responses to Environmental Issues," Journal of Environmental Economics and Management, Elsevier, vol. 42(1), pages 23-52, July. [Downloadable!] (restricted)
  2. Adam B. Jaffe & Karen Palmer, 1997. "Environmental Regulation And Innovation: A Panel Data Study," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 610-619, November. [Downloadable!] (restricted)
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  3. Frondel, Manuel & Schmidt, Christoph M., 2005. "Evaluating environmental programs: The perspective of modern evaluation research," Ecological Economics, Elsevier, vol. 55(4), pages 515-526, December. [Downloadable!] (restricted)
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  4. Frondel, Manuel & Horbach, Jens & Rennings, Klaus & Requate, Till, 2004. "Environmental Policy Tools and Firm-Level Management Practices : Empirical Evidence for Germany," Economics Working Papers 2004,02, Christian-Albrechts-University of Kiel, Department of Economics. [Downloadable!]
  5. Adam Jaffe & Richard Newell & Robert Stavins, 2002. "Environmental Policy and Technological Change," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 22(1), pages 41-70, June. [Downloadable!] (restricted)
  6. Parry, Ian & Pizer, William & Fischer, Carolyn, 1998. "Instrument Choice for Environmental Protection When Technological Innovation is Endogenous," Discussion Papers dp-99-04, Resources For the Future. [Downloadable!]
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  7. Rennings, Klaus & Zwick, Thomas, 2001. "The employment impact of cleaner production on the firm level : empirical evidence from a survey in five European countries," ZEW Discussion Papers 01-08, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  8. Brunnermeier, Smita B. & Cohen, Mark A., 2003. "Determinants of environmental innovation in US manufacturing industries," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 278-293, March. [Downloadable!] (restricted)
  9. Milliman, Scott R. & Prince, Raymond, 1989. "Firm incentives to promote technological change in pollution control," Journal of Environmental Economics and Management, Elsevier, vol. 17(3), pages 247-265, November. [Downloadable!] (restricted)
  10. Anton, W.R.Q.Wilma Rose Q. & Deltas, George & Khanna, Madhu, 2004. "Incentives for environmental self-regulation and implications for environmental performance," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 632-654, July. [Downloadable!] (restricted)
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  11. Downing, Paul B. & White, Lawrence J., 1986. "Innovation in pollution control," Journal of Environmental Economics and Management, Elsevier, vol. 13(1), pages 18-29, March. [Downloadable!] (restricted)
  12. Dasgupta, Susmita & Hettige, Hemamala & Wheeler, David, 2000. "What Improves Environmental Compliance? Evidence from Mexican Industry," Journal of Environmental Economics and Management, Elsevier, vol. 39(1), pages 39-66, January. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Oberndorfer, Ulrich, 2008. "EU Emission Allowances and the Stock Market: Evidence from the Electricity Industry," ZEW Discussion Papers 08-059, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  2. Jens Horbach, 2006. "Determinants of Environmental Innovation – New Evidence from German Panel Data Sources," Working Papers 2006.13, Fondazione Eni Enrico Mattei. [Downloadable!]
  3. Andreas Ziegler, 2008. "Disentangling Specific Subsets of Innovations : A Micro-Econometric Analysis of their Determinants," Economics working paper series 08/100, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich. [Downloadable!]
  4. Frondel, Manuel & Horbach, Jens & Rennings, Klaus, 2004. "End-of-Pipe or Cleaner Production? : An Empirical Comparison of Environmental Innovation Decisions Across OECD Countries," ZEW Discussion Papers 04-82, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
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