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Determinants of eco-innovations by type of environmental impact. The role of regulatory push/pull, technology push and market pull

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  • Horbach, Jens
  • Rammer, Christian
  • Rennings, Klaus

Abstract

Empirical analyses of the determinants of environmental innovations were rarely able to distinguish between different areas of environmental impacts. The paper tries to close this gap by employing a new and unique dataset based on the German Community Innovation Survey conducted in 2009. The main purpose of the paper is to test whether different types of eco-innovations (according to their environmental impacts) are driven by different factors. Besides a complex set of different supply, firm specific and demand factors, the literature on the determinants of environmental innovations accentuates the important role of regulation, cost savings and customer benefits. We find that current and expected government regulation is particularly important for pushing firms to reduce air (e.g. CO₂, SO₂ or NOₓ) as well as water or noise emissions, avoid hazardous substances and increase recyclability of products. Cost savings are an important motivation for reducing energy and material use, pointing to the role of energy and raw materials prices as well as taxation as drivers for eco-innovation. Customer requirements are another important source for eco-innovations, particularly with regard to products with improved environmental performance and process innovations that increase material efficiency, reduce energy consumption and waste and the use of dangerous substances. Firms confirm a high importance of expected future regulations for all environmental product innovations.

Suggested Citation

  • Horbach, Jens & Rammer, Christian & Rennings, Klaus, 2011. "Determinants of eco-innovations by type of environmental impact. The role of regulatory push/pull, technology push and market pull," ZEW Discussion Papers 11-027, ZEW - Leibniz Centre for European Economic Research.
  • Handle: RePEc:zbw:zewdip:11027
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    References listed on IDEAS

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    More about this item

    Keywords

    Environmental Innovation; Environmental Impacts; Discrete Choice Models; Regulation; Cost Savings; Demand Pull; Environmental Policy;
    All these keywords.

    JEL classification:

    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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