Do Green Innovations stimulate Employment? – Firm-level Evidence From Germany
AbstractThis paper studies the impact of environmental innovation on employment growth in the period 2006-2008 using firm-level data for German manufacturing and services. It extends the model by Harrison et al (2008) in order to distinguish between employment effects of environmental and non-environmental product as well as process innovation. As a robustness check patent data on green technologies are employed. The results demonstrate that both environmental and non-environmental product innovations stimulate employment growth. We find a similar gross employment effect of both types of product innovations. That is, one-percent increases in sales stemming from new environmental and non-environmental products increase gross employment by one percent each. Thus, we do not find evidence that that new products with environmental benefits for consumers are produced with higher or lower efficiency than old products. Yet, the net employment contribution of non-green product innovations is 4 to 5 times larger than the net contribution of green product innovations. This is the result of differences in the average innovation engagement and innovation success of both types of new products. In contrast, environmental and non-environmental process innovation plays only a little role for employment growth. In particular, we do not identify a significant trade-off between more environmental-friendly production technologies and employment growth. This holds for both cleaner production technologies and end-of pipe technologies.
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Bibliographic InfoPaper provided by WWWforEurope in its series WWWforEurope Working Papers series with number 53.
Date of creation: Feb 2014
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Publication status: published
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Postal: WWWforEurope Project Office Austrian Institute of Economic Research Arsenal Objekt 20 A-1030 Vienna
Find related papers by JEL classification:
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- L80 - Industrial Organization - - Industry Studies: Services - - - General
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-03-01 (All new papers)
- NEP-ENV-2014-03-01 (Environmental Economics)
- NEP-EUR-2014-03-01 (Microeconomic European Issues)
- NEP-INO-2014-03-01 (Innovation)
- NEP-KNM-2014-03-01 (Knowledge Management & Knowledge Economy)
- NEP-LMA-2014-03-01 (Labor Markets - Supply, Demand, & Wages)
- NEP-RES-2014-03-01 (Resource Economics)
- NEP-SBM-2014-03-01 (Small Business Management)
- NEP-TID-2014-03-01 (Technology & Industrial Dynamics)
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