IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper

Environmental and Innovation Performance in a Dynamic Impure Public Good Framework

  • Massimiliano Mazzanti

    ()

  • Valeria Costantini
  • Susanna Mancinelli

    ()

  • Massimilano Corradini

We model investment decisions regarding innovation and emissions abatement in a dynamic theoretical framework. Considering knowledge stock as an impure public good, we study the reaction function between one representative agent’s investments in innovation and the other agents’ investments in the public characteristic of the impure public good. We demonstrate that the reaction function has a positive slope under general conditions and that its sensitiveness is affected by assumptions on the elasticity of substitution in the benefit function. The positivity of the reaction function is then empirically tested in an econometric estimation. We exploit an original sector-based database by gathering innovation efforts as well as polluting emissions and economic dimensions over the time span 1996-2005 for 15 European countries and 23 manufacturing sectors. Empirical results show that sector-based innovation investment is positively driven by the public characteristics provided by other sectors. Different reactivity strength for different polluting emissions also allows us to disclose the role of complementarity in agents’ decisions.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://out.economia.unife.it/uploads/dip_deit/quaderni/201117.pdf
Download Restriction: no

Paper provided by University of Ferrara, Department of Economics in its series Working Papers with number 201117.

as
in new window

Length: 34 pages
Date of creation: 19 Nov 2011
Date of revision:
Handle: RePEc:udf:wpaper:201117
Contact details of provider: Postal:
Via Voltapaletto, 11 - I-44121 Ferrara (Italy)

Phone: +39 0532 455006
Fax: +39 0532 205349
Web page: http://dipem.economia.unife.it/

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Ekins, Paul, 1996. "How large a carbon tax is justified by the secondary benefits of CO2 abatement?," Resource and Energy Economics, Elsevier, vol. 18(2), pages 161-187, June.
  2. Kiviet, Jan F., 1995. "On bias, inconsistency, and efficiency of various estimators in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 68(1), pages 53-78, July.
  3. Rubbelke, Dirk T. G., 2003. "An analysis of differing abatement incentives," Resource and Energy Economics, Elsevier, vol. 25(3), pages 269-294, August.
  4. Dirk T.G. Rübbelke & Anil Markandya, 2008. "Impure Public Technologies and Environmental Policy," Working Papers 2008.76, Fondazione Eni Enrico Mattei.
  5. Matthew J. Kotchen, 2006. "Green Markets and Private Provision of Public Goods," Journal of Political Economy, University of Chicago Press, vol. 114(4), pages 816-845, August.
  6. Matthew J. Kotchen, 2009. "Voluntary Provision of Public Goods for Bads: A Theory of Environmental Offsets," Economic Journal, Royal Economic Society, vol. 119(537), pages 883-899, 04.
  7. Franco Malerba, 2005. "Innovation and the evolution of industries," KITeS Working Papers 172, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Jul 2005.
  8. Reinhardt, Forest L. & Stavins, Robert N. & Vietor, Richard H.K., 2008. "Corporate Social Responsibility Through an Economic Lens," Discussion Papers dp-08-12, Resources For the Future.
  9. Adam B. Jaffe & Karen Palmer, 1997. "Environmental Regulation And Innovation: A Panel Data Study," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 610-619, November.
  10. Costantini, Valeria & Mazzanti, Massimiliano, 2012. "On the green and innovative side of trade competitiveness? The impact of environmental policies and innovation on EU exports," Research Policy, Elsevier, vol. 41(1), pages 132-153.
  11. Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
    • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
  12. M Arellano & O Bover, 1990. "Another Look at the Instrumental Variable Estimation of Error-Components Models," CEP Discussion Papers dp0007, Centre for Economic Performance, LSE.
  13. Cole, Matthew A. & Elliott, Robert J.R. & Okubo, Toshihiro, 2010. "Trade, environmental regulations and industrial mobility: An industry-level study of Japan," Ecological Economics, Elsevier, vol. 69(10), pages 1995-2002, August.
  14. Ulrich Wagner & Christopher Timmins, 2009. "Agglomeration Effects in Foreign Direct Investment and the Pollution Haven Hypothesis," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 43(2), pages 231-256, June.
  15. Nick Johnstone & Ivan Hascic & David Popp, 2008. "Renewable Energy Policies And Technological Innovation: Evidence Based On Patent Counts," NBER Working Papers 13760, National Bureau of Economic Research, Inc.
  16. Andreas Löschel & Dirk T.G. Rübbelke, 2009. "Impure public goods and technological interdependencies," Journal of Economic Studies, Emerald Group Publishing, vol. 36(6), pages 596-615, November.
  17. Los, Bart & Timmer, Marcel P., 2003. "The 'appropriate technology' explanation of productivity growth differentials: an empirical approach," GGDC Research Memorandum 200361, Groningen Growth and Development Centre, University of Groningen.
  18. Milgrom, Paul & Roberts, John, 1995. "Complementarities and fit strategy, structure, and organizational change in manufacturing," Journal of Accounting and Economics, Elsevier, vol. 19(2-3), pages 179-208, April.
  19. Kaul, Inge & Grunberg, Isabelle & Stern, Marc (ed.), 1999. "Global Public Goods: International Cooperation in the 21st Century," OUP Catalogue, Oxford University Press, number 9780195130522, May.
  20. Keuning, Steven J. & van Dalen, Jan & de Haan, Mark, 1999. "The Netherlands' NAMEA; presentation, usage and future extensions," Structural Change and Economic Dynamics, Elsevier, vol. 10(1), pages 15-37, January.
  21. Olivier Bahn & Andrew Leach, 2008. "The secondary benefits of climate change mitigation: an overlapping generations approach," Computational Management Science, Springer, vol. 5(3), pages 233-257, May.
  22. Klaas van 't Veld & Matthew J. Kotchen, 2010. "Green Clubs," NBER Working Papers 16627, National Bureau of Economic Research, Inc.
  23. Nicholas Bloom & Christos Genakos & Ralf Martin & Raffaella Sadun, 2008. "Modern Management: Good for the Environment or just Hot Air?," NBER Working Papers 14394, National Bureau of Economic Research, Inc.
  24. Koen Frenken & Frank Van Oort & Thijs Verburg, 2007. "Related Variety, Unrelated Variety and Regional Economic Growth," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 685-697.
  25. Bogliacino, Francesco & Pianta, Mario, 2011. "Engines of growth. Innovation and productivity in industry groups," Structural Change and Economic Dynamics, Elsevier, vol. 22(1), pages 41-53, February.
  26. Anil Markandya & Dirk Rübbelke, 2004. "Ancillary Benefits of Climate Policy," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 224(4), pages 488-503, July.
  27. Ron Boschma & Simona Iammarino, 2009. "Related Variety, Trade Linkages, and Regional Growth in Italy," Economic Geography, Clark University, vol. 85(3), pages 289-311, 07.
  28. Gonzalo Camba-Mendez, 1998. "Can real equilibrium models account for the fluctuations of the UK business cycle?," NIESR Discussion Papers 128, National Institute of Economic and Social Research.
  29. Goulder, Lawrence H. & Schneider, Stephen H., 1999. "Induced technological change and the attractiveness of CO2 abatement policies," Resource and Energy Economics, Elsevier, vol. 21(3-4), pages 211-253, August.
  30. Popp, David, 2006. "International innovation and diffusion of air pollution control technologies: the effects of NOX and SO2 regulation in the US, Japan, and Germany," Journal of Environmental Economics and Management, Elsevier, vol. 51(1), pages 46-71, January.
  31. Judson, Ruth A. & Owen, Ann L., 1999. "Estimating dynamic panel data models: a guide for macroeconomists," Economics Letters, Elsevier, vol. 65(1), pages 9-15, October.
  32. Vicary, Simon, 1997. "Joint production and the private provision of public goods," Journal of Public Economics, Elsevier, vol. 63(3), pages 429-445, February.
  33. Cornes, Richard & Sandler, Todd, 1994. "The comparative static properties of the impure public good model," Journal of Public Economics, Elsevier, vol. 54(3), pages 403-421, July.
  34. Goulder, Lawrence H. & Mathai, Koshy, 2000. "Optimal CO2 Abatement in the Presence of Induced Technological Change," Journal of Environmental Economics and Management, Elsevier, vol. 39(1), pages 1-38, January.
  35. Belis-Bergouignan, Marie-Claude & Oltra, Vanessa & Saint Jean, Maider, 2004. "Trajectories towards clean technology: example of volatile organic compound emission reductions," Ecological Economics, Elsevier, vol. 48(2), pages 201-220, February.
  36. Matthew J. Kotchen & Michael R. Moore, 2004. "Private Provision of Environmental Public Goods: Household Participation in Green-Electricity Programs," Department of Economics Working Papers 2004-07, Department of Economics, Williams College.
  37. Markusen, James R. & Venables, Anthony J., 1999. "Foreign direct investment as a catalyst for industrial development," European Economic Review, Elsevier, vol. 43(2), pages 335-356, February.
  38. Matthew J. Kotchen, 2003. "Impure Public Goods and the Comparative Statics of Environmentally Friendly Consumption," Department of Economics Working Papers 2003-06, Department of Economics, Williams College.
  39. de Haan, Mark & Keuning, Steven J, 1996. "Taking the Environment into Account: The NAMEA Approach," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 42(2), pages 131-48, June.
  40. Cornes, Richard & Sandler, Todd, 1984. "Easy Riders, Joint Production, and Public Goods," Economic Journal, Royal Economic Society, vol. 94(375), pages 580-98, September.
  41. Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-58, December.
  42. Cristiano Antonelli & Pier Paolo Patrucco & Francesco Quatraro, 2011. "Productivity Growth and Pecuniary Knowledge Externalities: An Empirical Analysis of Agglomeration Economies in European Regions," Post-Print halshs-00727606, HAL.
  43. Jaffe, Adam B. & Newell, Richard G. & Stavins, Robert N., 2003. "Chapter 11 Technological change and the environment," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 1, chapter 11, pages 461-516 Elsevier.
  44. Karen Pittel & Dirk Rübbelke, 2010. "Local and Global Externalities, Environmental Policies and Growth," Working Papers 2010-15, BC3.
  45. Breschi, Stefano & Malerba, Franco & Orsenigo, Luigi, 2000. "Technological Regimes and Schumpeterian Patterns of Innovation," Economic Journal, Royal Economic Society, vol. 110(463), pages 388-410, April.
  46. Eckhardt Bode, 2004. "The spatial pattern of localized R&D spillovers: an empirical investigation for Germany," Journal of Economic Geography, Oxford University Press, vol. 4(1), pages 43-64, January.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:udf:wpaper:201117. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alberto Benati)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.