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Carbon Dioxide reducing Environmental innovations, sector upstream/downstream integration and policy. Evidence from the EU

Author

Listed:
  • Massimiliano Mazzanti

    () (Department of Economics and Management, University of Ferrara, Ferrara (Italy) and SEEDS, Ferrara (Italy).)

  • Giovanni Marin

    () (CERIS-CNR, Milano (Italy).)

  • Susanna Mancinelli

    () (Department of Economics and Management, University of Ferrara, Ferrara (Italy) and SEEDS, Ferrara (Italy))

  • Francesco Nicolli

    () (CERIS-CNR, Milano (Italy).)

Abstract

Eco innovations in the climate change realm require pressures and knowledge from outside the firm’s and sector’s boundaries. The role of policies is well known, as a tool that potentially tackles two externalities: innovation and environmental market failures. Sector integration is also increasingly relevant for understanding the economic, environmental and innovation performances of countries. We integrate these two perspectives to provide evidence on the policy effects behind the adoption of eco innovations in EU sectors. We take a sector perspective by exploiting EU CIS data over 2006-2008. By using past CO2 emission intensity (CO2 on value added) as a proxy of policy stringency, we find that emission intensive sectors are more likely to adopt CO2-related eco-innovations. The aforementioned results are valid for both the economy as a whole and for industrial sectors specifically. We additionally show that not only environmental policies are important to sustain EI adoptions. Other ‘external’ drivers play a role. Looking at the role of inter sector integration and knowledge sources, we observe that sectors with more emission intensive upstream ‘partners’ eco-innovate more to reduce their CO2 footprints. The positive and significant effect of upstream emission intensity (supplier’s emission intensity) is actually stronger than the effect of ‘direct’ CO2 emission intensity (policy effect).

Suggested Citation

  • Massimiliano Mazzanti & Giovanni Marin & Susanna Mancinelli & Francesco Nicolli, 2014. "Carbon Dioxide reducing Environmental innovations, sector upstream/downstream integration and policy. Evidence from the EU," SEEDS Working Papers 1814, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Aug 2014.
  • Handle: RePEc:srt:wpaper:1814
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    References listed on IDEAS

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    Cited by:

    1. Leoncini, Riccardo & Montresor, Sandro & Rentocchini, Francesco, 2016. "CO2-reducing innovations and outsourcing: Evidence from photovoltaics and green construction in North-East Italy," Research Policy, Elsevier, vol. 45(8), pages 1649-1659.
    2. Nicolò Barbieri & Claudia Ghisetti & Marianna Gilli & Giovanni Marin & Francesco Nicolli, 2016. "A Survey Of The Literature On Environmental Innovation Based On Main Path Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 30(3), pages 596-623, July.
    3. Aşıcı, Ahmet Atıl, 2015. "On the sustainability of the economic growth path of Turkey: 1995–2009," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1731-1741.
    4. Ghisetti, Claudia & Pontoni, Federico, 2015. "Investigating policy and R&D effects on environmental innovation: A meta-analysis," Ecological Economics, Elsevier, vol. 118(C), pages 57-66.
    5. Mazzanti, Massimiliano & Rizzo, Ugo, 2017. "Diversely moving towards a green economy: Techno-organisational decarbonisation trajectories and environmental policy in EU sectors," Technological Forecasting and Social Change, Elsevier, vol. 115(C), pages 111-116.

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    Keywords

    Environmental innovations; sector integration; induced effects; innovation adoption; NAMEA; Input output; EU; carbon abatement.;

    JEL classification:

    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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