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Stringency of regulation and innovation in waste management: an empirical analysis on EU countries

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  • Grazia Cecere
  • Nicoletta Corrocher

Abstract

The transformation of waste into a valuable resource is a key process towards sustainable development and green growth and therefore represents a major concern for policy-makers. Technological innovation plays a crucial role in waste management and therefore understanding the way in which regulation may spur innovation in this domain constitute is crucial. This article aims at testing the weak version of the Porter hypothesis in waste management, by analysing the dynamic relationship between the stringency of environmental regulation and innovation in a European cross-country setting. Results confirm that the stringency of regulation positively affects innovation, but the effect is non-linear, suggesting the existence of an optimal cap to the stringency of regulation. Furthermore, the overall environmental conditions of the country, as well as the presence of highly polluting sectors hinder the development of environmental innovations.

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  • Grazia Cecere & Nicoletta Corrocher, 2016. "Stringency of regulation and innovation in waste management: an empirical analysis on EU countries," Industry and Innovation, Taylor & Francis Journals, vol. 23(7), pages 625-646, October.
    • Handle: RePEc:taf:indinn:v:23:y:2016:i:7:p:625-646
    DOI: 10.1080/13662716.2016.1195253
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    4. Aleksandra Falkowska, 2020. "The impact of environmental policy on location patterns in the waste management industry," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(1), pages 167-195, April.
    5. You, Zhuoying & Teirlinck, Peter, 2024. "Specialization in climate technologies at the regional level in Europe: relatedness and the moderating role of policy direction," Technological Forecasting and Social Change, Elsevier, vol. 203(C).
    6. M. Pilar Latorre & Margarita Martinez-Nuñez & Carmen Callao, 2021. "Modelling and analysing the relationship between innovation and the European Regulations on hazardous waste shipments," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 21(4), pages 575-594, December.
    7. Smol, Marzena & Kulczycka, Joanna, 2019. "Towards innovations development in the European raw material sector by evolution of the knowledge triangle," Resources Policy, Elsevier, vol. 62(C), pages 453-462.
    8. Abdulla, Eman & Lim, King Yoong & Morris, Diego & Saliba, Faten, 2022. "Climate Change, Gender Equality, and Firm-Level Innovation : Cross-Country Evidence," The Warwick Economics Research Paper Series (TWERPS) 1429, University of Warwick, Department of Economics.
    9. Wanli Zhang & Bin Zhu & Yongling Li & Dan Yan, 2024. "Revisiting the Porter hypothesis: a multi-country meta-analysis of the relationship between environmental regulation and green innovation," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
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    11. Tiziana Di Cimbrini & Fabrizio Maturo & Stefania Migliori & Francesco Paolone, 2018. "Innovation Propensity in the Specialized Suppliers Industry," International Business Research, Canadian Center of Science and Education, vol. 11(10), pages 129-148, October.
    12. Ren, Qiuzhen & Albrecht, Johan, 2023. "Toward circular economy: The impact of policy instruments on circular economy innovation for European small medium enterprises," Ecological Economics, Elsevier, vol. 207(C).
    13. Capasso, Marco & Hansen, Teis & Heiberg, Jonas & Klitkou, Antje & Steen, Markus, 2019. "Green growth – A synthesis of scientific findings," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 390-402.
    14. Carmen Callao & M. Pilar Latorre & Margarita Martinez-Núñez, 2021. "Understanding Hazardous Waste Exports for Disposal in Europe: A Contribution to Sustainable Development," Sustainability, MDPI, vol. 13(16), pages 1-14, August.
    15. Mingxing Li & Xinxing Wang & Zihao Wang & Babar Maqbool & Abid Hussain & Waris Ali Khan, 2022. "Bibliometric Analysis of the Research on the Impact of Environmental Regulation on Green Technology Innovation Based on CiteSpace," IJERPH, MDPI, vol. 19(20), pages 1-26, October.
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