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Employment Effects of Ecological Innovations: An Empirical Analysis

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  • Harabi, Najib

Abstract

Ecological innovations have increasingly been seen as a major response to environmental problems. An important question for both economic research and public policy is whether these innovations also increase employment or not (the question of a double dividend). The purpose of this paper is to investigate empirically the factors affecting direct employment changes due to eco-innovations at the firm level. This analysis has been conducted in the framework of estimating a labor demand function including eco-innovations, the firm’s output changes (changes in sales), its labor costs changes and a set of control variables (e.g. firm-specific variables, industry and country dummies). Using data from around 1600 firms in five different countries (Germany, Great Britain, Italy, Holland and Switzerland) we have obtained the following empirical results: firms investing in relatively important (from the firm’s perspective) labor cost saving product innovations that have not been subsidized by the state and pursuing a market driven business strategy that leads to increases of their sales in industries in which they have a market power also increase the likelihood of their achieving a positive long term direct employment effect. Firms that deviate - on average - from this ideal portrait do not have positive direct employment effects. (It should, however, be emphasized that neither the indirect microeconomic nor the overall macroeconomic effects of eco-innovations are the subject of this study.)

Suggested Citation

  • Harabi, Najib, 2000. "Employment Effects of Ecological Innovations: An Empirical Analysis," MPRA Paper 4395, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:4395
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    File URL: https://mpra.ub.uni-muenchen.de/4395/1/MPRA_paper_4395.pdf
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    References listed on IDEAS

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    1. Blechinger, Doris & Kleinknecht, Alfred & Licht, Georg & Pfeiffer, Friedhelm, 1998. "The impact of innovation on employment in Europe: An analysis using CIS data," ZEW Dokumentationen 98-02, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    2. Pfeiffer, Friedhelm, 1997. "Human capital and innovation in East and West German manufacturing firms," ZEW Discussion Papers 97-08, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    3. Brouwer, Erik & Kleinknecht, Alfred & Reijnen, Jeroen O N, 1993. "Employment Growth and Innovation at the Firm Level," Journal of Evolutionary Economics, Springer, vol. 3(2), pages 153-159, May.
    4. James D Adams, 1997. "The Structure of Firm R&D and the Factor Intensity of Production," Working Papers 97-15, Center for Economic Studies, U.S. Census Bureau.
    5. M Frybourg, 1988. "The Impact of Technological Change," Environment and Planning C, , vol. 6(2), pages 145-152, June.
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    Citations

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    Cited by:

    1. Horbach Jens, 2010. "The Impact of Innovation Activities on Employment in the Environmental Sector – Empirical Results for Germany at the Firm Level," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(4), pages 403-419, August.
    2. Horbach, Jens, 2008. "The impact of innovation activities on employment in the environmental sector : empirical results for Germany at the firm level," IAB Discussion Paper 200816, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. Ernst, Daniel & Stoetzer, Matthias-Wolfgang, 2012. "Beschäftigungseffekte von Innovationen auf Unternehmensebene: Ein Überblick theoretischer und empirischer Befunde," Wirtschaftswissenschaftliche Schriften 03/2012, University of Applied Sciences Jena, Department of Business Administration.
    4. Horbach, Jens & Rennings, Klaus, 2012. "Environmental innovation and employment dynamics in different technology fields: An analysis based on the German community innovation survey 2009," ZEW Discussion Papers 12-006, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

    More about this item

    Keywords

    Innovation; Ecological innovations; Employment; Labour Demand; European Countries; Germany; Great Britain; Italy; Holland; Switzerland;

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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