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CO2-reducing innovations and outsourcing: Evidence from photovoltaics and green construction in North-East Italy

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  • Leoncini, Riccardo
  • Montresor, Sandro
  • Rentocchini, Francesco

Abstract

The paper investigates whether innovations entailing a perceived reduction of CO2 emissions are related to outsourcing. Some research hypotheses are put forward and tested on a sample of firms in two key ‘green-industries’, sustainable buildings and photovoltaics, in a regional context (North–East Italy) for which detailed survey-based information could be collected. An effect on CO2 reducing innovations is found for the externalisation of tangible activities only, as opposed to intangibles, whose outsourcing even decreases them. The results are robust in econometric terms, and suggest some new environmental implications of the standard ‘make-or-buy’ decisions of firms.

Suggested Citation

  • Leoncini, Riccardo & Montresor, Sandro & Rentocchini, Francesco, 2016. "CO2-reducing innovations and outsourcing: Evidence from photovoltaics and green construction in North-East Italy," Research Policy, Elsevier, vol. 45(8), pages 1649-1659.
  • Handle: RePEc:eee:respol:v:45:y:2016:i:8:p:1649-1659
    DOI: 10.1016/j.respol.2016.04.010
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    2. Siedschlag, Iulia & Meneto, Stefano & Tong Koecklin, Manuel, 2019. "Determinants of green innovations: Firm-level evidence," Papers WP643, Economic and Social Research Institute (ESRI).
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    4. Sandro Montresor & Francesco Quatraro, 2020. "Green technologies and Smart Specialisation Strategies: a European patent-based analysis of the intertwining of technological relatedness and key enabling technologies," Regional Studies, Taylor & Francis Journals, vol. 54(10), pages 1354-1365, October.
    5. Muhammad Yousaf Raza & Yingchao Chen & Songlin Tang, 2022. "Assessing the Green R&D Investment and Patent Generation in Pakistan towards CO 2 Emissions Reduction with a Novel Decomposition Framework," Sustainability, MDPI, vol. 14(11), pages 1-19, May.
    6. Chen, Fenglong & Wang, Meichang & Pu, Zhengning, 2022. "The impact of technological innovation on air pollution: Firm-level evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 177(C).
    7. Subtil Lacerda, Juliana & van den Bergh, Jeroen C.J.M., 2020. "Effectiveness of an ‘open innovation’ approach in renewable energy: Empirical evidence from a survey on solar and wind power," Renewable and Sustainable Energy Reviews, Elsevier, vol. 118(C).
    8. Nieves Arranz & Carlos F. Arroyabe & Juan Carlos Fernandez de Arroyabe, 2019. "The effect of regional factors in the development of eco‐innovations in the firm," Business Strategy and the Environment, Wiley Blackwell, vol. 28(7), pages 1406-1415, November.
    9. Ghosh, Debarati & Dutta, Meghna, 2022. "Environmental behaviour under credit constraints – Evidence from panel of Indian manufacturing firms," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 490-500.
    10. Ge-zhi Wu & Da-ming You, 2021. "Margin trading, short selling and corporate green innovation," Papers 2107.11255, arXiv.org, revised Aug 2021.
    11. Jensen, Camilla & Mina, Andrea, 2019. "Did transition bring cleaner air? Effects of ownership, territorial and technology policy on air pollution," Ecological Economics, Elsevier, vol. 165(C), pages 1-1.
    12. Iulia Siedschlag & Stefano Meneto & Manuel Tong Koecklin, 2022. "Enabling Green Innovations for the Circular Economy: What Factors Matter?," Sustainability, MDPI, vol. 14(19), pages 1-24, September.
    13. Chen, Zan & Jin, Jun & Li, Meng, 2022. "Does media coverage influence firm green innovation? The moderating role of regional environment," Technology in Society, Elsevier, vol. 70(C).
    14. Artitzar Erauskin‐Tolosa & Eugenio Zubeltzu‐Jaka & Iñaki Heras‐Saizarbitoria & Olivier Boiral, 2020. "ISO 14001, EMAS and environmental performance: A meta‐analysis," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1145-1159, March.
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    16. Matthew A. COLE & Robert R.J. ELLIOTT & OKUBO Toshihiro & Liyun ZHANG, 2017. "The Pollution Outsourcing Hypothesis: An empirical test for Japan," Discussion papers 17096, Research Institute of Economy, Trade and Industry (RIETI).

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    More about this item

    Keywords

    Environmental innovations; CO2 reduction; Outsourcing;
    All these keywords.

    JEL classification:

    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures

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