IDEAS home Printed from https://ideas.repec.org/a/taf/eurjfi/v27y2021i1-2p31-61.html
   My bibliography  Save this article

Is firm-level clean or dirty innovation valued more?

Author

Listed:
  • Antoine Dechezleprêtre
  • Cal B. Muckley
  • Parvati Neelakantan

Abstract

We examine how Tobin's Q is linked to ‘clean’ and ‘dirty’ innovation and innovation efficiency at the firm level. Clean innovation relates to patented technologies in areas such as renewable energy generation and electric cars, whereas dirty innovation relates to fossil-based energy generation and combustion engines. We use a global patent data set, covering over 15,000 firms across 12 countries. We find strong and robust evidence that the stock market recognizes the value of clean innovation and innovation efficiency and accords higher valuations to those firms that engage in successful clean research and development activities. The results are substantively invariant across innovation measurement, model specifications, estimators adopted, select sub-samples of firms and United States and European patent offices.

Suggested Citation

  • Antoine Dechezleprêtre & Cal B. Muckley & Parvati Neelakantan, 2021. "Is firm-level clean or dirty innovation valued more?," The European Journal of Finance, Taylor & Francis Journals, vol. 27(1-2), pages 31-61, January.
    • Handle: RePEc:taf:eurjfi:v:27:y:2021:i:1-2:p:31-61
    DOI: 10.1080/1351847X.2020.1785520
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1351847X.2020.1785520
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1351847X.2020.1785520?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fischer, Carolyn & Hübler, Michael & Schenker, Oliver, 2021. "More birds than stones – A framework for second-best energy and climate policy adjustments," Journal of Public Economics, Elsevier, vol. 203(C).
    2. Luca Di Simone & Barbara Petracci & Mariacristina Piva, 2022. "Economic Sustainability, Innovation, and the ESG Factors: An Empirical Investigation," Sustainability, MDPI, vol. 14(4), pages 1-16, February.
    3. Yang, Yong-cong & Nie, Pu-yan, 2022. "Subsidy for clean innovation considered technological spillover," Technological Forecasting and Social Change, Elsevier, vol. 184(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:eurjfi:v:27:y:2021:i:1-2:p:31-61. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/REJF20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.