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Patents and P2: Innovation and Technology Adoption for Environmental Improvements

Author

Listed:
  • Keith Brouhle

    (Grinnell College)

  • Brad Graham

    (Grinnell College)

  • Donna Ramirez Harrington

    (University of Vermont)

Abstract

In this paper, we identify factors that influence adoption of two types of environmental innovations, environmental patents and pollution prevention (P2) activities, and then measure the resulting influence of each on the pollution profile of the firm. We find that environmental patenting is most strongly driven by the technological capacity of the firm, including prior environmental patenting and prior P2 adoptions. While P2 activities are also influenced by prior adoptions of P2, other factors play an important role, including environmental innovation opportunities, the regulatory environment, and firm-specific characteristics. In terms of environmental outcomes, we find that both environmental technologies reduce pollution. Due to strong knowledge accumulation effects of environmental patents, the long-term impact of an environmental patent is stronger and longer lasting than the long-term impact of a P2 practice.

Suggested Citation

  • Keith Brouhle & Brad Graham & Donna Ramirez Harrington, 2023. "Patents and P2: Innovation and Technology Adoption for Environmental Improvements," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(2), pages 439-474, February.
    • Handle: RePEc:kap:enreec:v:84:y:2023:i:2:d:10.1007_s10640-022-00729-3
    DOI: 10.1007/s10640-022-00729-3
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    More about this item

    Keywords

    Environmental patents; GMM; Innovation; Knowledge accumulation; Pollution prevention; Technology adoption; Toxic releases;
    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
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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