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Employment changes in environmentally innovative firms

Author

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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 - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  • Handle: RePEc:zbw:zewdip:0146
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    References listed on IDEAS

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    Cited by:

    1. Massimiliano Mazzanti & Giulio Cainelli & Roberto Zoboli, 2008. "The Relationship Between Environmental Efficiency and Manufacturing Firm’s Growth," Working Papers 2008.99, Fondazione Eni Enrico Mattei.
    2. Marcus Wagner, 2004. "The Porter Hypothesis Revisited: A Literature Review of Theoretical Models and Empirical Tests," Public Economics 0407014, EconWPA.

    More about this item

    Keywords

    Innovation; labour demand; discrete choice models;

    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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