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Are More Innovative Firms Less Vulnerable to New Environmental Regulation?

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Listed:
  • Joaquín Cañón-de-Francia
  • Concepción Garcés-Ayerbe
  • Marisa Ramírez-Alesón

Abstract

Compliance with pollution limits and standards requires firms to implement adaptation processes that are not only costly themselves but also affect future profits in as much as they modify production systems and methods. This paper attempts to respond to the question of how technological knowledge moderates the effect that the implementation of a new environmental regulation has on the results of affected firms. The regulation selected for this study is the Integrated Pollution Prevention and Control Act (IPPC). A Multivariate Regression Model (MVRM) has been applied to the regulatory event. The most important implication of this paper is that technological knowledge prepares a firm for adapting to a greater environmental demand such as may be derived from a new regulation. Copyright Springer Science+Business Media, Inc. 2007

Suggested Citation

  • Joaquín Cañón-de-Francia & Concepción Garcés-Ayerbe & Marisa Ramírez-Alesón, 2007. "Are More Innovative Firms Less Vulnerable to New Environmental Regulation?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 36(3), pages 295-311, March.
  • Handle: RePEc:kap:enreec:v:36:y:2007:i:3:p:295-311
    DOI: 10.1007/s10640-006-9023-1
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    Cited by:

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    2. Al-Najjar, Basil & Salama, Aly, 2022. "Mind the gap: Are female directors and executives more sensitive to the environment in high-tech us firms?," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    3. Horbach, Jens & Rammer, Christian & Rennings, Klaus, 2012. "Determinants of eco-innovations by type of environmental impact — The role of regulatory push/pull, technology push and market pull," Ecological Economics, Elsevier, vol. 78(C), pages 112-122.
    4. Marzucchi, Alberto & Montresor, Sandro, 2017. "Forms of knowledge and eco-innovation modes: Evidence from Spanish manufacturing firms," Ecological Economics, Elsevier, vol. 131(C), pages 208-221.
    5. Rexhäuser, Sascha & Rammer, Christian, 2011. "Unmasking the Porter hypothesis: Environmental innovations and firm-profitability," ZEW Discussion Papers 11-036, ZEW - Leibniz Centre for European Economic Research.
    6. Arkadiusz Świadek & Jadwiga Gorączkowska & Karolina Godzisz, 2021. "Conditions Driving Low-Carbon Innovation in a Medium-Sized European Country That Is Catching Up–Case Study of Poland," Energies, MDPI, vol. 14(7), pages 1-17, April.
    7. Giovanni Ferri & Marco Pini, 2019. "Environmental vs. Social Responsibility in the Firm. Evidence from Italy," Sustainability, MDPI, vol. 11(16), pages 1-20, August.
    8. Păcesilă, Mihaela & Ciocoiu, Carmen Nadia, 2017. "Eco-Innovation and its Determinants: A Review of the Emerging Literature," Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference (2017), Dubrovnik, Croatia, in: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Dubrovnik, Croatia, 7-9 September 2017, pages 134-144, IRENET - Society for Advancing Innovation and Research in Economy, Zagreb.
    9. Mihaela PÃCESILÃ & Carmen Nadia CIOCOIU, 2017. "Systematic Literature Review On Eco-Innovation Determinants," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 9(3), pages 30-44, September.
    10. Sascha Rexhäuser & Christian Rammer, 2014. "Environmental Innovations and Firm Profitability: Unmasking the Porter Hypothesis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 57(1), pages 145-167, January.
    11. 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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