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Employment changes in environmentally innovative firms

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  • Rennings, Klaus
  • Ziegler, Andreas
  • Zwick, Thomas

Abstract

This paper analyses the determinants of employment reactions induced by environmental innovations. On the basis of the parameter estimates of the Multinomial Logit and of several Multinomial Probit Models, we show that we have to distinguish between the factors that have an impact on employment increases and employment decreases. The data stem from a telephone survey covering about 1600 firms in five European countries that introduced eco-innovations recently. Environmental product and service innovations increase significantly the probability of creating jobs. Thus, supporting these innovations does not counteract labour market policy. In contrast to this, end-of-pipe eco-innovations increase the risk of destroying jobs, however at a higher significance level. Environmental innovations are skill-biased, they have a significant impact on employment changes if they are substantial and if they are induced by regulations. Firms expecting increasing sales are more prone to increase employment, while firms that want to slash costs by innovation and compete by soft factors decrease employment more frequently.

Suggested Citation

  • Rennings, Klaus & Ziegler, Andreas & Zwick, Thomas, 2001. "Employment changes in environmentally innovative firms," ZEW Discussion Papers 01-46, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:0146
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    References listed on IDEAS

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    Cited by:

    1. Giulio Cainelli & Massimiliano Mazzanti & Roberto Zoboli, 2013. "Environmental performance, manufacturing sectors and firm growth: structural factors and dynamic relationships," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 15(4), pages 367-387, October.
    2. Marcus Wagner, 2004. "The Porter Hypothesis Revisited: A Literature Review of Theoretical Models and Empirical Tests," Public Economics 0407014, University Library of Munich, Germany.
    3. Quang-Thanh Ngo & Thuy-Khanh Hong Thai & Van-Tien Cao & Anh-Tuan Nguyen & Ngoc-Hieu Hoang & Ngoc-Danh Nguyen, 2020. "Individual-level Employment Transitions in Rural Viet Nam," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 12(1), March.
    4. Mazzanti, Massimiliano & Zoboli, Roberto, 2007. "Environmental Efficiency, Emission Trends and Labour Productivity: Trade-Off or Joint Dynamics? Empirical Evidence Using NAMEA Panel Data," Climate Change Modelling and Policy Working Papers 9320, Fondazione Eni Enrico Mattei (FEEM).
    5. Cainelli, Giulio & Mazzanti, Massimiliano & Zoboli, Roberto, 2008. "The Relationship Between Environmental Efficiency and Manufacturing Firm’s Growth," Coalition Theory Network Working Papers 46656, Fondazione Eni Enrico Mattei (FEEM).
    6. Giulio Cainelli & Massimiliano Mazzanti & Roberto Zoboli, 2011. "Environmentally oriented innovative strategies and firm performance in services. Micro-evidence from Italy," International Review of Applied Economics, Taylor & Francis Journals, vol. 25(1), pages 61-85.
    7. Quang-Thanh Ngo, 2018. "Individual-level employment transitions in rural Vietnam," WIDER Working Paper Series 154, World Institute for Development Economic Research (UNU-WIDER).
    8. Horin, Nataliya, 2017. "Eco-innovative Activity of Ukrainian SMEs," Problems of World Agriculture / Problemy Rolnictwa Światowego, Warsaw University of Life Sciences, vol. 17(32, Part ), December.
    9. Pinget, Amandine, 2016. "Spécificités des déterminants des innovations environnementales : une approche appliquée aux PME [Specificities of determinants for environmental innovation : an approach applied to SMEs]," MPRA Paper 80108, University Library of Munich, Germany.
    10. Massimiliano Mazzanti & Roberto Zoboli, 2009. "Embedding environmental innovation in local production systems: SME strategies, networking and industrial relations: evidence on innovation drivers in industrial districts," International Review of Applied Economics, Taylor & Francis Journals, vol. 23(2), pages 169-195.

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    More about this item

    Keywords

    Innovation; labour demand; discrete choice models;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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