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Determinants of eco-innovations by type of environmental impact — The role of regulatory push/pull, technology push and market pull

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  • Horbach, Jens
  • Rammer, Christian
  • Rennings, Klaus

Abstract

Empirical analyses of eco-innovation determinants have rarely been able to distinguish between different areas of environmental impact. The present paper tries to close this gap by employing a new and unique dataset based on the German Community Innovation Survey, conducted in 2009. The main purpose of this paper is to test whether different types of eco-innovation (according to their environmental impacts) are driven by different factors. Beside a complex set of different supply, firm-specific, and demand factors, the literature on determinants of eco-innovation accentuates the important role of regulation, cost savings and customer benefits. We find that current and expected government regulation is particularly important with regard to pushing firms to reduce air (e.g. CO2, SO2 or NOx) as well as water or noise emissions, avoid hazardous substances, and increase recyclability of products. Cost savings are an important motivation for reducing energy and material use, pointing to the role of energy and raw material prices as well as taxation as drivers for eco-innovation. Customer requirements are another important source of eco-innovations, particularly with regard to products with improved environmental performance and process innovations that increase material efficiency, and reduce energy consumption, waste and the use of dangerous substances. Firms confirm a high importance of expected future regulations for all environmental product innovations.

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Bibliographic Info

Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 78 (2012)
Issue (Month): C ()
Pages: 112-122

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Handle: RePEc:eee:ecolec:v:78:y:2012:i:c:p:112-122

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

Related research

Keywords: Eco-innovation; Environmental impacts; Discrete choice models; Regulation; Cost savings; Demand pull; Environmental policy;

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References

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  1. van den Bergh, Jeroen C.J.M., 2008. "Environmental regulation of households: An empirical review of economic and psychological factors," Ecological Economics, Elsevier, vol. 66(4), pages 559-574, July.
  2. del Río González, Pablo, 2009. "The empirical analysis of the determinants for environmental technological change: A research agenda," Ecological Economics, Elsevier, vol. 68(3), pages 861-878, January.
  3. Joaquín Cañón-de-Francia & Concepción Garcés-Ayerbe & Marisa Ramírez-Alesón, 2007. "Are More Innovative Firms Less Vulnerable to New Environmental Regulation?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 36(3), pages 295-311, March.
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Citations

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Cited by:
  1. Doran, Justin & Ryan, Geraldine, 2012. "Regulation and Firm Perception, Eco-Innovation and Firm Performance," MPRA Paper 44578, University Library of Munich, Germany.
  2. Cainelli, Giulio & Mazzanti, Massimiliano, 2013. "Environmental innovations in services: Manufacturing–services integration and policy transmissions," Research Policy, Elsevier, vol. 42(9), pages 1595-1604.
  3. Marius Ley & Tobias Stucki & Martin Wörter, 2013. "The Impact of Energy Prices on Green Innovation," KOF Working papers 13-340, KOF Swiss Economic Institute, ETH Zurich.
  4. Apergis, Nicholas & Eleftheriou, Sofia & Payne, James E., 2013. "The relationship between international financial reporting standards, carbon emissions, and R&D expenditures: Evidence from European manufacturing firms," Ecological Economics, Elsevier, vol. 88(C), pages 57-66.
  5. Marianna Gilli & Susanna Mancinelli & Massimiliano Mazzanti, 2013. "Innovation Complementarity and Environmental Productivity Effects: Reality or Delusion? Evidence from the EU," Working Papers 2013.88, Fondazione Eni Enrico Mattei.
  6. Gilli, M. & Mazzanti, M. & Nicolli, F., 2013. "Sustainability and competitiveness in evolutionary perspectives: Environmental innovations, structural change and economic dynamics in the EU," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 45(C), pages 204-215.
  7. Ru-Jen Lin & Rong-Huei Chen & Thao-Minh Ho, 2013. "Market Demand, Green Innovation, and Firm Performance: Evidence from Hybrid Vehicle Industry," Diversity, Technology, and Innovation for Operational Competitiveness: Proceedings of the 2013 International Conference on Technology Innovation and Industrial Management, ToKnowPress.
  8. Marin, Giovanni, 2014. "Do eco-innovations harm productivity growth through crowding out? Results of an extended CDM model for Italy," Research Policy, Elsevier, vol. 43(2), pages 301-317.
  9. Horbach, Jens, 2013. "Do eco-innovations need specific regional characteristics?," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79927, Verein für Socialpolitik / German Economic Association.
  10. Gunnar Pippel, 2013. "Does Partner Type Matter in R&D Collaboration for Environmental Innovation?," IWH Discussion Papers 5, Halle Institute for Economic Research.
  11. Simone Borghesi & Valeria Costantini & Francesco Crespi & Massimiliano Mazzanti, 2013. "Environmental innovation and socio-economic dynamics in institutional and policy contexts," Journal of Evolutionary Economics, Springer, vol. 23(2), pages 241-245, April.
  12. Ghisetti, Claudia & Quatraro, Francesco, 2013. "Beyond inducement in climate change: Does environmental performance spur environmental technologies? A regional analysis of cross-sectoral differences," Ecological Economics, Elsevier, vol. 96(C), pages 99-113.
  13. Triguero, Angela & Moreno-Mondéjar, Lourdes & Davia, María A., 2013. "Drivers of different types of eco-innovation in European SMEs," Ecological Economics, Elsevier, vol. 92(C), pages 25-33.

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