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Impacts of regulation on eco-innovation and job creation

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  • Jens Horbach

    (University of Applied Sciences Augsburg, Germany)

Abstract

New environmental technologies (environmental/eco-innovations) are often regarded as potential job creators—in addition to their positive effects on the environment. Environmental regulation may induce innovations that are accompanied by positive growth and employment effects. Recent empirical analyses show that the introduction of cleaner process innovations, rather than product-based ones, may also lead to higher employment. The rationale is that cleaner technologies lead to cost savings, which helps to improve firms’ competitiveness, thereby inducing positive effects on their market shares.

Suggested Citation

  • Jens Horbach, 2020. "Impacts of regulation on eco-innovation and job creation," IZA World of Labor, Institute of Labor Economics (IZA), pages 265-265, November.
    • Handle: RePEc:iza:izawol:journl:2020:n:265
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    References listed on IDEAS

    as
    1. Lachenmaier, Stefan & Rottmann, Horst, 2011. "Effects of innovation on employment: A dynamic panel analysis," International Journal of Industrial Organization, Elsevier, vol. 29(2), pages 210-220, March.
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    8. Kammerer, Daniel, 2009. "The effects of customer benefit and regulation on environmental product innovation.: Empirical evidence from appliance manufacturers in Germany," Ecological Economics, Elsevier, vol. 68(8-9), pages 2285-2295, June.
    9. Brunnermeier, Smita B. & Cohen, Mark A., 2003. "Determinants of environmental innovation in US manufacturing industries," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 278-293, March.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    environmental innovation; employment; regulation;
    All these keywords.

    JEL classification:

    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • J49 - Labor and Demographic Economics - - Particular Labor Markets - - - Other
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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