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Eco-innovation and Regulatory Push/Pull Effect in the Case of REACH Regulation: Empirical Evidence from Survey Data

Author

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  • Nabila Arfaoui

    (University of Nice Sophia Antipolis, France
    GREDEG CNRS)

Abstract

Numerous theoretical and empirical studies demonstrate a positive correlation between eco-innovation and environmental regulation. However, only few analyses explain how environmental policies drive eco-innovation. This paper attempts to fill this gap by studying eco-innovation-friendly mechanisms in the design of European REACH (Registration, Evaluation, Authorization of Chemicals) regulation. The aim of REACH, which became effective in 2007, is "to ensure a high level of protection of human health and the environment while improving competitiveness and innovation", which makes it an appropriate and original object for analysing the relationship between environmental regulation and eco-innovation. The primary contribution of this paper is to bring, from an original survey on REACH regulation, a new theoretical and empirical lens to the field of eco-innovation by showing how design regulation is able to push and pull the environment. We find that: (1) the process of authorization, and the obligation to transmit information throughout the supply chain play an important role in “pushing” eco-innovation. This stresses that policy makers should promote new “green knowledge” to encourage eco-innovation; (2) extending responsibility has a significantly positive effect on “pulling” eco-innovation; and (3) only well-designed instruments, appropriate to the techno-industrial and institutional contexts in which they will be applied, lead to innovation.

Suggested Citation

  • Nabila Arfaoui, 2014. "Eco-innovation and Regulatory Push/Pull Effect in the Case of REACH Regulation: Empirical Evidence from Survey Data," GREDEG Working Papers 2014-19, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France, revised Dec 2015.
    • Handle: RePEc:gre:wpaper:2014-19
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    References listed on IDEAS

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    3. Danquah Jeff Boakye & Ishmael TIngbani & Gabriel Ahinful & Isaac Damoah & Venancio Tauringana, 2020. "Sustainable environmental practices and financial performance: Evidence from listed small and medium‐sized enterprise in the United Kingdom," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2583-2602, September.

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    More about this item

    Keywords

    Eco-innovation; REACH; Regulatory Push/Pull Effect; Econometric Modelling;
    All these keywords.

    JEL classification:

    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

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