Examining the Factors Influencing Environmental Innovations
AbstractTechnological innovation is a key factor for achieving a better environmental performance of firms and the economy as a whole, to the extent that it helps to increase the material/energy efficiency of production processes and to reduce emission/effluents associated to outputs. Environmental innovation may spur from exogenous driving forces, like policy intervention, and/or from endogenous factors associated to firm market and management strategies. Despite the crucial importance of research in this field, empirical evidence at firm microeconomic level, for various reasons, is still scarce. Microeconomic-based analysis is needed in order to assess what forces are lying behind environmental innovation at the level of the firm, where innovative practices emerge and are adopted. The paper exploits information deriving from two surveys conducted on a sample of manufacturing firms in Emilia Romagna region -Northern Italy- in 2002 and 2004, located in a district-intense local production system. New evidence is provided by testing a set of hypotheses, concerning the influence of: (i) firm structural variables; (ii) environmental R&D; (iii) environmental policy pressure and regulatory costs; (iv) past firm performances; (v) networking activities, (vi) other non-environmental techno-organizational innovations and (vii) quality/nature of industrial relations. We estimate input and output-based environmental innovation reduced form specifications in order to test the set of hypotheses. The applied investigation shows that environmental innovation drivers, both at input and output level, are found within exogenous factors and endogenous elements concerning the firm and its activities/strategies within and outside its natural boundaries. In the present case study, the usual structural characteristics of the firm and performances appear to matter less than R&D, induced costs, networking, organisational flatness and innovative oriented industrial relations. Environmental Policies and environmental voluntary auditing schemes exert some relevant direct and indirect effects on innovation, although evidence is mixed and further research is particularly needed. Although this new empirical evidence is focussing on a specific industrial territory, we provide food for discussion on firm environmental innovation strategies, and research suggestions for further empirical work.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2006.20.
Date of creation: Jan 2006
Date of revision:
Environmental innovation; Environmental R&D; Manufacturing sector; Local system; Environmental policy; Networking;
Find related papers by JEL classification:
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
- Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
- Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
This paper has been announced in the following NEP Reports:
- NEP-AGR-2006-02-19 (Agricultural Economics)
- NEP-ALL-2006-02-19 (All new papers)
- NEP-ENV-2006-02-19 (Environmental Economics)
- NEP-INO-2006-02-19 (Innovation)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cesare Dosi & Michele Moretto, .
"Environmental Innovation, War of Attrition and Investment Grants,"
ubs0406, University of Brescia, Department of Economics.
- Cesare Dosi & Michele Moretto, 2010. "Environmental Innovation, War Of Attrition And Investment Grants," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 12(01), pages 37-59.
- Cesare Dosi & Michele Moretto, 2007. "Environmental Innovation, War of Attrition and Investment Grants," "Marco Fanno" Working Papers 0045, Dipartimento di Scienze Economiche "Marco Fanno".
- Michele Moretto & Cesare Dosi, 2004. "Environmental Innovation, War of Attrition and Investment Grants," Working Papers 2004.156, Fondazione Eni Enrico Mattei.
- Revesz, Richard L. & Stavins, Robert N., 2007. "Environmental Law," Handbook of Law and Economics, Elsevier.
- Leslie E. Papke & Jeffrey M. Wooldridge, 1993.
"Econometric Methods for Fractional Response Variables with an Application to 401(k) Plan Participation Rates,"
NBER Technical Working Papers
0147, National Bureau of Economic Research, Inc.
- Papke, Leslie E & Wooldridge, Jeffrey M, 1996. "Econometric Methods for Fractional Response Variables with an Application to 401(K) Plan Participation Rates," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 619-32, Nov.-Dec..
- Brunnermeier, Smita B. & Cohen, Mark A., 2003. "Determinants of environmental innovation in US manufacturing industries," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 278-293, March.
- Aggeri, Franck, 1999. "Environmental policies and innovation: A knowledge-based perspective on cooperative approaches," Research Policy, Elsevier, vol. 28(7), pages 699-717, September.
- Massimiliano Mazzanti & Roberto Zoboli, 2005. "Economic Instruments and Induced Innovation: The Case of End-of-Life Vehicles European Policies," Working Papers 2005.80, Fondazione Eni Enrico Mattei.
- Manuel Frondel & Jens Horbach & Klaus Rennings, 2004.
"What Triggers Environmental Management and Innovation? – Empirical Evidence for Germany,"
RWI Discussion Papers
0015, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
- Frondel, Manuel & Horbach, Jens & Rennings, Klaus, 2008. "What triggers environmental management and innovation? Empirical evidence for Germany," Ecological Economics, Elsevier, vol. 66(1), pages 153-160, May.
- Requate, Till, 2005. "Dynamic incentives by environmental policy instruments--a survey," Ecological Economics, Elsevier, vol. 54(2-3), pages 175-195, August.
- Cesare Dosi & Michele Moretto, 1999.
"Is Ecolabelling a Reliable Environmental Policy Measure?,"
1999.9, Fondazione Eni Enrico Mattei.
- Cesare Dosi & Michele Moretto, 2001. "Is Ecolabelling a Reliable Environmental Policy Measure?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 18(1), pages 113-127, January.
- Jaffe, Adam B. & Newell, Richard G. & Stavins, Robert N., 2005.
"A tale of two market failures: Technology and environmental policy,"
Elsevier, vol. 54(2-3), pages 164-174, August.
- Stavins, Robert & Jaffe, Adam & Newell, Richard, 2004. "A Tale of Two Market Failures: Technology and Environmental Policy," Discussion Papers dp-04-38, Resources For the Future.
- Cainelli, Giulio & Mancinelli, Susanna & Mazzanti, Massimiliano, 2005.
"Social Capital, R&D and Industrial Districts,"
AICCON Working Papers
17-2005, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
- Greenstone, Michael, 2004.
"Did the Clean Air Act cause the remarkable decline in sulfur dioxide concentrations?,"
Journal of Environmental Economics and Management,
Elsevier, vol. 47(3), pages 585-611, May.
- Michael Greenstone, 2003. "Did the Clean Air Act Cause the Remarkable Decline in Sulfur Dioxide Concentrations?," Working Papers 0407, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
- Michael Grubb & David Ulph, 2002. "Energy, the Environment, and Innovation," Oxford Review of Economic Policy, Oxford University Press, vol. 18(1), pages 92-106, Spring.
- Edward L. Glaeser & David Laibson & Bruce Sacerdote, 2002. "An Economic Approach to Social Capital," Economic Journal, Royal Economic Society, vol. 112(483), pages 437-458, November.
- Massimiliano Mazzanti & Paolo Pini & Ermanno Tortia, 2004. "Organizational Innovations, Human Resources and Industrial Relations," Rivista di Politica Economica, SIPI Spa, vol. 94(1), pages 197-242, January-F.
- Cassiman, Bruno & Veugelers, Reinhilde, 2002.
"R&D cooperation and spillovers: Some empirical evidence from Belgium,"
Open Access publications from Katholieke Universiteit Leuven
urn:hdl:123456789/101382, Katholieke Universiteit Leuven.
- Bruno Cassiman & Reinhilde Veugelers, 2002. "R&D Cooperation and Spillovers: Some Empirical Evidence from Belgium," American Economic Review, American Economic Association, vol. 92(4), pages 1169-1184, September.
- Wulong Gu & Jianmin Tang, 2004. "Link between innovation and productivity in Canadian manufacturing industries," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 13(7), pages 671-686.
- Mohnen,Pierre & Roeller,Lars-Hendrik, 2003.
"Complementarities in Innovation Policy,"
025, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology.
- Pierre Mohnen & Lars-Hendrick Röller, 2001. "Complementarities in Innovation Policy," CIRANO Working Papers 2001s-28, CIRANO.
- Mohnen, Pierre & Röller, Lars-Hendrik, 2001. "Complementarities in Innovation Policy," CEPR Discussion Papers 2712, C.E.P.R. Discussion Papers.
- Pierre Mohnen & Lars-Hendrick Röller, 2003. "Complementarities in Innovation Policy," CIRANO Working Papers 2003s-60, CIRANO.
- Pierre Mohnen & Lars-Hendrik Röller, 2000. "Complementarities in Innovation Policy," CIG Working Papers FS IV 00-18, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
- Armin Schmutzler, 1998.
"Environmental Regulations and Managerial Myopia,"
9903, University of Zurich, Socioeconomic Institute.
- Adam B. Jaffe et al., 1995. "Environmental Regulation and the Competitiveness of U.S. Manufacturing: What Does the Evidence Tell Us?," Journal of Economic Literature, American Economic Association, vol. 33(1), pages 132-163, March.
- Hoffmann, Esther & Ankele, Kathrin & Ziegler, Andreas & Rennings, Klaus & Nill, Jan, 2003. "The Influence of the EU Environmental Management and Auditing Scheme on Environmental Innovations and Competitiveness in Germany: An Analysis on the Basis of Case Studies and a Large-Scale Survey," ZEW Discussion Papers 03-14, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Mazzanti, Massimiliano & Zoboli, Roberto, 2006. "Economic instruments and induced innovation: The European policies on end-of-life vehicles," Ecological Economics, Elsevier, vol. 58(2), pages 318-337, June.
- Michael Greenstone, 1998. "The Impacts of Environmental Regulations on Industrial Activity: Evidence from the 1970 and 1977 Clean Air Act Amendments and the Census of Manufacturers," Working Papers 787, Princeton University, Department of Economics, Industrial Relations Section..
- Vanessa OLTRA (GREThA UMR CNRS 5113), 2008. "Environmental innovation and industrial dynamics: the contributions of evolutionary economics," Cahiers du GREThA 2008-28, Groupe de Recherche en Economie Théorique et Appliquée.
- del Río González, Pablo, 2009. "The empirical analysis of the determinants for environmental technological change: A research agenda," Ecological Economics, Elsevier, vol. 68(3), pages 861-878, January.
- Vanessa OLTRA & Maïder SAINT JEAN, 2009. "Environmental Innovations and Industrial Dynamics (In French)," Cahiers du GREThA 2009-22, Groupe de Recherche en Economie Théorique et Appliquée.
- Doran, Justin & Ryan, Geraldine, 2012. "Regulation and Firm Perception, Eco-Innovation and Firm Performance," MPRA Paper 44578, University Library of Munich, Germany.
- Giovanni Dosi & Marco Grazzi, 2006. "Energy, Development, and the Environment: An Appraisal Three Decades After the "Limits to Growth" Debate," LEM Papers Series 2006/15, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- Wilfried Ehrenfeld, 2012. "Towards a Theory of Climate Innovation - A Model Framework for Analyzing Drivers and Determinants," IWH Discussion Papers 1, Halle Institute for Economic Research.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (barbara racah).
If references are entirely missing, you can add them using this form.