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The influence of energy prices on adoption of clean technologies and recycling: Evidence from European SMEs

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  • Triguero, Angela
  • Moreno-Mondéjar, Lourdes
  • Davia, María A.

Abstract

This paper examines the relative influence of energy prices on several environmental practices at firm level among SMEs. To that aim, we explore an EU-wide data-set providing information for 5194 SMEs in 27 European countries. We distinguish between recycling and purchasing and/or development of cleaner technologies and investigate whether the set of external and internal factors to the firm driving the adoption of least-integrated environmental innovation (recycling) differ from those influencing cleaner technologies (either purchased or in-house). The main findings stemming from a multivariate probit model suggest some significant differences among firms performing recycling practices and those purchasing and developing cleaner technologies. In particular, we find that current energy prices only increase the probability to adopt recycling practices while they have no significant effect on the most-integrated environmental innovation (developing cleaner technologies). Our results also indicate that market factors (proxied as expected increases in the demand for green products) are more relevant drivers of the least-advanced eco-innovation than of developing cleaner technologies. Interestingly, we find that higher technological and managerial capabilities are more effective in driving the adoption of cleaner technologies than in enhancing recycling solutions. A positive impact of cooperation and collaboration with universities and private agencies is found only on developing cleaner technologies in-house. This finding confirms the role of knowledge networks for the most-advanced innovative practice. Finally, neither existing nor future environmental regulations have significant impact on environmentally-friendly innovative practices while subsidies only increase the probability of purchasing cleaner technologies.

Suggested Citation

  • Triguero, Angela & Moreno-Mondéjar, Lourdes & Davia, María A., 2014. "The influence of energy prices on adoption of clean technologies and recycling: Evidence from European SMEs," Energy Economics, Elsevier, vol. 46(C), pages 246-257.
    • Handle: RePEc:eee:eneeco:v:46:y:2014:i:c:p:246-257
    DOI: 10.1016/j.eneco.2014.09.020
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    4. Bamanga Umar & Md. Mahmudul Alam & Abul Quasem Al-Amin, 2021. "Exploring the contribution of energy price to carbon emissions in African countries," Post-Print hal-03520182, HAL.
    5. Lisa Melander, 2018. "Customer and Supplier Collaboration in Green Product Innovation: External and Internal Capabilities," Business Strategy and the Environment, Wiley Blackwell, vol. 27(6), pages 677-693, September.
    6. Nunes, Inês Carrilho & Catalão-Lopes, Margarida, 2020. "The impact of oil shocks on innovation for alternative sources of energy: Is there an asymmetric response when oil prices go up or down?," Journal of Commodity Markets, Elsevier, vol. 19(C).
    7. Sonia García-Moreno & Víctor-Raúl López-Ruiz, 2023. "A Review of the Energy Sector as a Key Factor in Industry 4.0: The Case of Spain," Energies, MDPI, vol. 16(11), pages 1-17, May.
    8. Raquel Ortega-Lapiedra & Miguel Marco-Fondevila & Sabina Scarpellini & Fernando Llena-Macarulla, 2019. "Measurement of the Human Capital Applied to the Business Eco-Innovation," Sustainability, MDPI, vol. 11(12), pages 1-16, June.
    9. Pilar Portillo-Tarragona & Sabina Scarpellini & Jose M. Moneva & Jesus Valero-Gil & Alfonso Aranda-Usón, 2018. "Classification and Measurement of the Firms’ Resources and Capabilities Applied to Eco-Innovation Projects from a Resource-Based View Perspective," Sustainability, MDPI, vol. 10(9), pages 1-23, September.
    10. Qin, Yong & Xu, Zeshui & Wang, Xinxin & Škare, Marinko, 2022. "Green energy adoption and its determinants: A bibliometric analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 153(C).
    11. Lisa Melander, 2017. "Achieving Sustainable Development by Collaborating in Green Product Innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 26(8), pages 1095-1109, December.
    12. Claudia Lood Alayón & Kristina Säfsten & Glenn Johansson, 2022. "Barriers and Enablers for the Adoption of Sustainable Manufacturing by Manufacturing SMEs," Sustainability, MDPI, vol. 14(4), pages 1-34, February.
    13. Moriah Bostian & Rolf Färe & Shawna Grosskopf & Tommy Lundgren, 2022. "Prevention or cure? Optimal abatement mix," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 24(4), pages 503-531, October.
    14. Rafik Abdesselam & Malia Kedjar & Patricia Renou-Maissant, 2024. "What are the drivers of eco-innovation? Empirical evidence from French start-ups," Post-Print hal-04304153, HAL.
    15. Yang, Zhenbing & Hao, Chunyan & Shao, Shuai & Chen, Zhuo & Yang, Lili, 2022. "Appropriate technology and energy security: From the perspective of biased technological change," Technological Forecasting and Social Change, Elsevier, vol. 177(C).

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    More about this item

    Keywords

    Energy prices; Environmental innovation; Cleaner technologies; End-of-pipe technologies; Induced innovation; SMEs;
    All these keywords.

    JEL classification:

    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Q49 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Other

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