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Integrated product policy and environmental product innovations: An empirical analysis

  • Rehfeld, Katharina-Maria
  • Rennings, Klaus
  • Ziegler, Andreas

The European Commission has recently stepped up its promotion of the ?Integrated Product Policy?. The objective of the IPP is to support the realisation of environmental product innovations and thus to achieve a broad reduction of all environmental impacts throughout a product?s life cycle. Based on a unique company level data set for the German manufacturing sector, this paper empirically examines the relationship between environmental organisational measures regarded as IPP measures by the European Commission and environmental product innovations. According to the econometric analysis, the certification of environmental management systems has a significantly positive effect on environmental product innovations. Waste disposal measures or product take-back systems appear to be an even more important driver of environmental product innovations. The econometric analysis also shows that other factors that have been suggested in the literature, such as environmental policy, technology push and market pull, as well as other specific company characteristics have a significantly positive influence on environmental product innovations. According to the descriptive analysis of environmental product innovators, economic aspects (i.e. higher prices) rather than soft factors appear to be the major obstacles to the commercial exploitation of environmental products and thus also to environmental product innovations.

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Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 61 (2007)
Issue (Month): 1 (February)
Pages: 91-100

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Handle: RePEc:eee:ecolec:v:61:y:2007:i:1:p:91-100
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolecon

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  1. White, Halbert, 1982. "Maximum Likelihood Estimation of Misspecified Models," Econometrica, Econometric Society, vol. 50(1), pages 1-25, January.
  2. Adam B. Jaffe & Karen Palmer, 1996. "Environmental Regulation and Innovation: A Panel Data Study," NBER Working Papers 5545, National Bureau of Economic Research, Inc.
  3. Stephen J. Decanio & William E. Watkins, 1998. "Investment In Energy Efficiency: Do The Characteristics Of Firms Matter?," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 95-107, February.
  4. Ebling, Günther & Janz, Norbert, 1999. "Export and innovation activities in the German service sector: empirical evidence at the firm level," ZEW Discussion Papers 99-53, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  5. Peters, Bettina & Lööf, Hans & Janz, Norbert, 2003. "Firm Level Innovation and Productivity: Is there a Common Story Across Countries?," ZEW Discussion Papers 03-26, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  6. Nakamura, Masao & Takahashi, Takuya & Vertinsky, Ilan, 2001. "Why Japanese Firms Choose to Certify: A Study of Managerial Responses to Environmental Issues," Journal of Environmental Economics and Management, Elsevier, vol. 42(1), pages 23-52, July.
  7. Rennings, Klaus, 2000. "Redefining innovation -- eco-innovation research and the contribution from ecological economics," Ecological Economics, Elsevier, vol. 32(2), pages 319-332, February.
  8. Rosenberg, Nathan, 1974. "Science, Invention and Economic Growth," Economic Journal, Royal Economic Society, vol. 84(333), pages 90-108, March.
  9. Adam Jaffe & Richard Newell & Robert Stavins, 2002. "Environmental Policy and Technological Change," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 22(1), pages 41-70, June.
  10. Arora Seema & Cason Timothy N., 1995. "An Experiment in Voluntary Environmental Regulation: Participation in EPA's 33/50 Program," Journal of Environmental Economics and Management, Elsevier, vol. 28(3), pages 271-286, May.
  11. Henriques, Irene & Sadorsky, Perry, 1996. "The Determinants of an Environmentally Responsive Firm: An Empirical Approach," Journal of Environmental Economics and Management, Elsevier, vol. 30(3), pages 381-395, May.
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