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A new insight into environmental innovation: Does the maturity of environmental management systems matter?

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  • Inoue, Emiko
  • Arimura, Toshi H.
  • Nakano, Makiko

Abstract

Technological innovation has recently become more essential than ever. To examine the factors that might induce environmental technological innovation, we focus on ISO 14001, a voluntary approach to environmental management, and scrutinise how the proficiency or maturity level of ISO 14001 in facilities influences environment-related research and development (R&D) expenditures that promote environmental technological innovation. We measure the maturity level based on the length of time since a given facility adopted ISO 14001. Using Japanese facility-level data from “Environmental Policy Tools and Firm-Level Management and Practices: An International Survey” (OECD Survey), we estimate two Tobit models by addressing an endogeneity issue in ISO 14001. The estimation results provide empirical evidence that as the ISO 14001 is improved in facilities, those facilities are likely to spend more on environmental R&D. The facility age and market concentration also positively affect environmental R&D. These findings suggest that the maturity level of ISO 14001 is an important factor influencing the investment in environmental R&D.

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Bibliographic Info

Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 94 (2013)
Issue (Month): C ()
Pages: 156-163

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Handle: RePEc:eee:ecolec:v:94:y:2013:i:c:p:156-163

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

Related research

Keywords: Environmental R&D; Voluntary action; ISO 14001; Endogeneity; Environmental innovation; Porter Hypothesis;

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References

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  1. Arimura, Toshi & Hibiki, Akira & Katayama, Hajime, 2007. "Is a Voluntary Approach an Effective Environmental Policy Instrument? A Case for Environmental Management Systems," Discussion Papers, Resources For the Future dp-07-31, Resources For the Future.
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  3. Arimura, Toshi H. & Darnall, Nicole & Katayama, Hajime, 2011. "Is ISO 14001 a gateway to more advanced voluntary action? The case of green supply chain management," Journal of Environmental Economics and Management, Elsevier, vol. 61(2), pages 170-182, March.
  4. Paul Lanoie & Jérémy Laurent‐Lucchetti & Nick Johnstone & Stefan Ambec, 2011. "Environmental Policy, Innovation and Performance: New Insights on the Porter Hypothesis," Journal of Economics & Management Strategy, Wiley Blackwell, Wiley Blackwell, vol. 20(3), pages 803-842, 09.
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Cited by:
  1. Arimura, Toshihide & Iguchi, Hakaru & Michida, Etsuyo, 2014. "Product-related environmental regulation and voluntary environmental actions : impacts of RoHS and REACH in Malaysia," IDE Discussion Papers, Institute of Developing Economies, Japan External Trade Organization(JETRO) 454, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  2. Corradini, Massimiliano & Costantini, Valeria & Mancinelli, Susanna & Mazzanti, Massimiliano, 2014. "Unveiling the dynamic relation between R&D and emission abatement," Ecological Economics, Elsevier, Elsevier, vol. 102(C), pages 48-59.

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