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Social and private outcomes of green innovation incentives in European advancing economies

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  • Stojčić, Nebojša

Abstract

A question of particular importance in environmental policy is how to deliver eco-innovations with both private and social benefits. The question is even more important in emerging economies where pollution-intensive industries prevail and policies often favour growth over ecological concerns. This paper explores how four public incentives (regulation, taxes, subsidies and procurement of eco-innovations) and two private incentives (demand incentives and reputational concerns) contribute to the creation of private and social benefits from green (eco) innovations in emerging Central European economies. All six types of incentives have positive effects on the introduction of environmental innovations. Firms introduce innovations with benefits for end users only if they are accompanied by private benefits. The combination of regulation, procurement and financial incentives together with private incentives increase the likelihood of the introduction of environmental innovations with social benefits. This paper provides evidence-based recommendations for the management of environmental policies.

Suggested Citation

  • Stojčić, Nebojša, 2021. "Social and private outcomes of green innovation incentives in European advancing economies," Technovation, Elsevier, vol. 104(C).
    • Handle: RePEc:eee:techno:v:104:y:2021:i:c:s0166497221000511
    DOI: 10.1016/j.technovation.2021.102270
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    Cited by:

    1. Ying, Ying & Wang, Shixiang & Liu, Yang, 2022. "Make bricks without straw: Eco-innovation for resource-constrained firms in emerging markets," Technovation, Elsevier, vol. 114(C).
    2. María Elena Murrieta-Oquendo & Iván Manuel De la Vega, 2022. "State and Dynamics of the Innovative Performance of Medium and Large Firms in the Manufacturing Sector in Emerging Economies: The Cases of Peru and Ecuador," Sustainability, MDPI, vol. 15(1), pages 1-23, December.
    3. Chiappinelli, Olga & Giuffrida, Leonardo M. & Spagnolo, Giancarlo, 2023. "Public procurement as an innovation policy: Where do we stand?," ZEW Discussion Papers 23-002, ZEW - Leibniz Centre for European Economic Research.
    4. Parrilli, M. Davide & Balavac-Orlić, Merima & Radicic, Dragana, 2023. "Environmental innovation across SMEs in Europe," Technovation, Elsevier, vol. 119(C).

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