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Stimulating Different Types of Eco-Innovation in the UK: Government Policies and Firm Motivations

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  • Pelin Demirel

    ()
    (Nottingham University Business School, Nothingham University)

  • Effie Kesidou

    ()
    (Nottingham University Business School, Nothingham University)

Abstract

In this paper, we adopt a recent OECD framework and examine the role of external policy tools and internal firm specific factors for stimulating three different types of eco-innovations that range on a spectrum of lower to higher technological and environmental impact: End-of-Pipeline Pollution Control Technologies, Integrated Cleaner Production Technologies and Environmental R&D. Using a novel firm-level dataset from a DEFRA survey, we estimate a Tobit model, which provides empirical evidence showing that these eco-innovations are motivated by different external policy tools and internal firm specific factors. Our findings indicate that End of Pipeline Technologies and Integrated Cleaner Production Technologies are mainly driven by equipment upgrade motives with a view of improving efficiency while environmental regulations are effective in stimulating the End-of-Pipeline technologies and Environmental R&D. Interestingly, alongside government induced regulations, we find that market factors, mainly motivated by cost savings, are effective in driving Environmental R&D. Finally, ISO14001 certification is effective in strengthening the positive impact of environmental management systems on both End-of-Pipeline technologies and Environmental R&D while CSR policies have no significant impact on motivating any of the eco-innovations.

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File URL: http://www.stps.metu.edu.tr/sites/stps.metu.edu.tr/files/1203.pdf
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Bibliographic Info

Paper provided by STPS - Science and Technology Policy Studies Center, Middle East Technical University in its series STPS Working Papers with number 1203.

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Length: 37 pages
Date of creation: May 2012
Date of revision: May 2012
Handle: RePEc:met:stpswp:1203

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Keywords: Cleaner Production; Environmental Regulation; Environmental Taxes; Environmental Management Systems; Eco-R&D; ISO14001;

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References

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Citations

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Cited by:
  1. Giovanni Marin & Alberto Marzucchi & Roberto Zoboli, 2014. "SMEs and Barriers to Eco-Innovation in EU: A Diverse Palette of Greens," SEEDS Working Papers, SEEDS, Sustainability Environmental Economics and Dynamics Studies 0614, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Apr 2014.
  2. Kesidou, Effie & Demirel, Pelin, 2012. "On the drivers of eco-innovations: Empirical evidence from the UK," Research Policy, Elsevier, Elsevier, vol. 41(5), pages 862-870.
  3. Giovanni Marin, 2012. "Do Eco-Innovations Harm Productivity Growth through Crowding Out? Results of an Extended CDM Model for Italy," Working Papers, IMT Institute for Advanced Studies Lucca 3/2012, IMT Institute for Advanced Studies Lucca, revised May 2012.
  4. Inoue, Emiko & Arimura, Toshi H. & Nakano, Makiko, 2013. "A new insight into environmental innovation: Does the maturity of environmental management systems matter?," Ecological Economics, Elsevier, Elsevier, vol. 94(C), pages 156-163.
  5. Trianni, Andrea & Cagno, Enrico & Worrell, Ernst, 2013. "Innovation and adoption of energy efficient technologies: An exploratory analysis of Italian primary metal manufacturing SMEs," Energy Policy, Elsevier, Elsevier, vol. 61(C), pages 430-440.
  6. Jens Horbach, 2014. "Do eco-innovations need specific regional characteristics? An econometric analysis for Germany," Jahrbuch für Regionalwissenschaft, Springer, Springer, vol. 34(1), pages 23-38, February.
  7. Patricia Crifo & Vanina Forget, 2012. "The Economics of Corporate Social Responsibility: A Survey," Working Papers, HAL hal-00720640, HAL.
  8. ACHABOU Akli & DEKHILI Sihem & HAMDOUN Mohamed, 2014. "L’intégration des entreprises des pays en développement dans les CGV permet-elle l’apprentissage environnemental ? Une application aux entreprises oléicoles tunisiennes," Working Papers, Department of Research, Ipag Business School 2014-496, Department of Research, Ipag Business School.
  9. Horbach, Jens, 2013. "Do eco-innovations need specific regional characteristics? An econometric analysis for Germany," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order, Verein für Socialpolitik / German Economic Association 79927, Verein für Socialpolitik / German Economic Association.

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