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What triggers environmental management and innovation? Empirical evidence for Germany

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  • Frondel, Manuel
  • Horbach, Jens
  • Rennings, Klaus

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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Bibliographic 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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Web page: http://www.elsevier.com/locate/ecolecon

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  1. 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.
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  3. Rennings, Klaus & Ziegler, Andreas, 2004. "Determinants of Environmental Innovations in Germany: Do Organizational Measures Matter? A Discrete Choice Analysis at the Firm Level," ZEW Discussion Papers 04-30, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  4. Frondel, Manuel & Schmidt, Christoph M., 2001. "Evaluating environmental programs: the perspective of modern evaluation research," ZEW Discussion Papers 01-59, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  5. 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.
  6. Henriques, Irene & Sadorsky, Perry, 1996. "The Determinants of an Environmentally Responsive Firm: An Empirical Approach," Journal of Environmental Economics and Management, Elsevier, vol. 30(3), pages 381-395, May.
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  8. 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.
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  11. Rennings, Klaus, 2000. "Redefining innovation -- eco-innovation research and the contribution from ecological economics," Ecological Economics, Elsevier, Elsevier, vol. 32(2), pages 319-332, February.
  12. 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.
  13. 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.
  14. Hoffmann, Esther & Ankele, Kathrin & Ziegler, Andreas & Rennings, Klaus & Nill, Jan, 2003. "The Influence of the EU Environmental Management and Auditing Scheme on Environmental Innovations and Competitiveness in Germany: An Analysis on the Basis of Case Studies and a Large-Scale Survey," ZEW Discussion Papers 03-14, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  15. 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.
  16. Requate, Till, 1998. "Incentives to innovate under emission taxes and tradeable permits," European Journal of Political Economy, Elsevier, vol. 14(1), pages 139-165, February.
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