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Green Investment Challenges in European Firms: Internal vs. External Resources

Author

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  • Andrea Bacchiocchi

    (Department of Economics, Society, Politics (DESP), University of Urbino Carlo Bo, Via Saffi 42, 61029 Urbino, Italy)

  • Alessandro Bellocchi

    (Department of Economics, Society, Politics (DESP), University of Urbino Carlo Bo, Via Saffi 42, 61029 Urbino, Italy
    SEEDS, 44121 Ferrara, Italy)

  • Germana Giombini

    (Department of Economics, Society, Politics (DESP), University of Urbino Carlo Bo, Via Saffi 42, 61029 Urbino, Italy
    Mo.Fi.R., 60121 Ancona, Italy)

Abstract

This paper examines the impact of internal and external resources on the adoption of eco-efficiency actions by European firms. The empirical analysis is based on an ordered logit model on data from the fifth wave of the Flash Eurobarometer survey (2021) for a sample of 9158 firms. We obtain three main results. First, we show that internal and external financial resources are positively correlated with firm eco-innovations, but the association with the former is stronger. Second, we observe a high degree of complementarity between public and private funds. Finally, besides financial resources, both in-house technical expertise and external non-financial assistance seem to play an important role for the implementation of eco-efficiency actions at the firm level. These findings have some relevant policy implications. European policy-makers should increase opportunities for public co-financing, while providing support to firms for developing the necessary competencies to enable green investments.

Suggested Citation

  • Andrea Bacchiocchi & Alessandro Bellocchi & Germana Giombini, 2024. "Green Investment Challenges in European Firms: Internal vs. External Resources," Sustainability, MDPI, vol. 16(2), pages 1-20, January.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:2:p:496-:d:1314058
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    References listed on IDEAS

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    2. Bacchiocchi, Andrea & Calcagnini, Giorgio & Giombini, Germana, 2025. "Do bank hierarchies affect the use of guarantees?," Economics Letters, Elsevier, vol. 257(C).
    3. Carrera, Edgar J. Sanchez & Giombini, Germana & Calcagnini, Giorgio, 2025. "Bank lending policies and green transition," Structural Change and Economic Dynamics, Elsevier, vol. 74(C), pages 619-629.

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