IDEAS home Printed from https://ideas.repec.org/p/zbw/zewdip/22008.html
   My bibliography  Save this paper

Climate change affectedness and innovation in German firms

Author

Listed:
  • Horbach, Jens
  • Rammer, Christian

Abstract

Eco-innovations are crucial for the mitigation of climate change effects. It is therefore important to know if the existing climate change regulations and carbon pricing are appropriate and sufficient to trigger such innovations. Besides government measures, the demand for carbon neutral products or the impacts of climate change such as extreme weather conditions leading to higher costs for the affected firms may also promote eco-innovation activities. For the first time, the new wave of the Community Innovation Survey 2020 in Germany allows an analysis of the effects of climate change policy and costs, demand for climate friendly goods and extreme weather conditions on (eco-)innovation. The results of probit and treatment effect models show that innovative firms seem to be significantly more affected by climate change measures and consequences compared to other firms. All climate change indicators are positively correlated to eco-innovations. Interestingly, other innovation activities also profit from the extent to which a firm is affected by climate change albeit the marginal effects are lower compared to eco-innovations. Demand for climate neutral products is significantly important for all eco-product-innovations.

Suggested Citation

  • Horbach, Jens & Rammer, Christian, 2022. "Climate change affectedness and innovation in German firms," ZEW Discussion Papers 22-008, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:22008
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/251952/1/1798301644.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Daron Acemoglu & Philippe Aghion & Leonardo Bursztyn & David Hemous, 2012. "The Environment and Directed Technical Change," American Economic Review, American Economic Association, vol. 102(1), pages 131-166, February.
    2. Ralf Martin & Mirabelle Muûls & Ulrich J. Wagner, 2016. "The Impact of the European Union Emissions Trading Scheme on Regulated Firms: What Is the Evidence after Ten Years?," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 10(1), pages 129-148.
    3. Philippe Aghion & Roland Bénabou & Ralf Martin & Alexandra Roulet, 2023. "Environmental Preferences and Technological Choices: Is Market Competition Clean or Dirty?," American Economic Review: Insights, American Economic Association, vol. 5(1), pages 1-20, March.
    4. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 605-654.
    5. Simon Touboul & Matthieu Glachant & Antoine Dechezleprêtre & Sam Fankhauser & Jana Stoever, 2023. "Invention and Global Diffusion of Technologies for Climate Change Adaptation: A Patent Analysis," Review of Environmental Economics and Policy, University of Chicago Press, vol. 17(2), pages 316-335.
    6. Erik Haites, 2018. "Carbon taxes and greenhouse gas emissions trading systems: what have we learned?," Climate Policy, Taylor & Francis Journals, vol. 18(8), pages 955-966, September.
    7. John A. List & Daniel L. Millimet & Per G. Fredriksson & W. Warren McHone, 2003. "Effects of Environmental Regulations on Manufacturing Plant Births: Evidence from a Propensity Score Matching Estimator," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 944-952, November.
    8. Ghisetti, Claudia & Marzucchi, Alberto & Montresor, Sandro, 2015. "The open eco-innovation mode. An empirical investigation of eleven European countries," Research Policy, Elsevier, vol. 44(5), pages 1080-1093.
    9. Sascha Rexhäuser & Christian Rammer, 2014. "Environmental Innovations and Firm Profitability: Unmasking the Porter Hypothesis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 57(1), pages 145-167, January.
    10. Raphael Calel & Antoine Dechezleprêtre, 2016. "Environmental Policy and Directed Technological Change: Evidence from the European Carbon Market," The Review of Economics and Statistics, MIT Press, vol. 98(1), pages 173-191, March.
    11. Horbach, Jens & Rammer, Christian & Rennings, Klaus, 2012. "Determinants of eco-innovations by type of environmental impact — The role of regulatory push/pull, technology push and market pull," Ecological Economics, Elsevier, vol. 78(C), pages 112-122.
    12. Penna, Caetano C.R. & Geels, Frank W., 2015. "Climate change and the slow reorientation of the American car industry (1979–2012): An application and extension of the Dialectic Issue LifeCycle (DILC) model," Research Policy, Elsevier, vol. 44(5), pages 1029-1048.
    13. Nick Johnstone & Ivan Haščič & David Popp, 2010. "Renewable Energy Policies and Technological Innovation: Evidence Based on Patent Counts," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(1), pages 133-155, January.
    14. Marzucchi, Alberto & Montresor, Sandro, 2017. "Forms of knowledge and eco-innovation modes: Evidence from Spanish manufacturing firms," Ecological Economics, Elsevier, vol. 131(C), pages 208-221.
    15. Demirel, Pelin & Kesidou, Effie, 2011. "Stimulating different types of eco-innovation in the UK: Government policies and firm motivations," Ecological Economics, Elsevier, vol. 70(8), pages 1546-1557, June.
    16. Paul Lanoie & Jérémy Laurent‐Lucchetti & Nick Johnstone & Stefan Ambec, 2011. "Environmental Policy, Innovation and Performance: New Insights on the Porter Hypothesis," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 20(3), pages 803-842, September.
    17. Antoine Dechezlepretre & Sam Fankhauser & Matthieu Glachant & Jan Stoever & Simon Touboul, 2020. "Invention and Global Diffusion of Technologies for Climate Change Adaptation," World Bank Publications - Reports 33883, The World Bank Group.
    18. Martina K. Linnenluecke & Andrew Griffiths & Monika I. Winn, 2013. "Firm and industry adaptation to climate change: a review of climate adaptation studies in the business and management field," Wiley Interdisciplinary Reviews: Climate Change, John Wiley & Sons, vol. 4(5), pages 397-416, September.
    19. Marie-Theres von Schickfus, 2021. "Consequences of Future Climate Policy: Regional Economies, Financial Markets, and the Direction of Innovation," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 95.
    20. Philippe Quirion, 2021. "Tradable instruments to fight climate change: A disappointing outcome," Post-Print hal-03495904, HAL.
    21. Samuel Tang & David Demeritt, 2018. "Climate Change and Mandatory Carbon Reporting: Impacts on Business Process and Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 27(4), pages 437-455, May.
    22. Monika Winn & Manfred Kirchgeorg & Andrew Griffiths & Martina K. Linnenluecke & Elmar Günther, 2011. "Impacts from climate change on organizations: a conceptual foundation," Business Strategy and the Environment, Wiley Blackwell, vol. 20(3), pages 157-173, March.
    23. Horbach, Jens, 2008. "Determinants of environmental innovation--New evidence from German panel data sources," Research Policy, Elsevier, vol. 37(1), pages 163-173, February.
    24. Brunnermeier, Smita B. & Cohen, Mark A., 2003. "Determinants of environmental innovation in US manufacturing industries," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 278-293, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Giovanni Marin & Francesca Lotti, 2017. "Productivity effects of eco-innovations using data on eco-patents," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 26(1), pages 125-148.
    2. Brian Chi-ang Lin & Siqi Zheng & 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. Lorena D’Agostino, 2015. "How MNEs respond to environmental regulation: integrating the Porter hypothesis and the pollution haven hypothesis," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 32(2), pages 245-269, August.
    4. Antonella Biscione & Raul Caruso & Annunziata de Felice, 2021. "Environmental innovation in European transition countries," Applied Economics, Taylor & Francis Journals, vol. 53(5), pages 521-535, January.
    5. Marin, Giovanni, 2014. "Do eco-innovations harm productivity growth through crowding out? Results of an extended CDM model for Italy," Research Policy, Elsevier, vol. 43(2), pages 301-317.
    6. Fabrizi, Andrea & Guarini, Giulio & Meliciani, Valentina, 2018. "Green patents, regulatory policies and research network policies," Research Policy, Elsevier, vol. 47(6), pages 1018-1031.
    7. Alessandra Colombelli & Jackie Krafft & Francesco Quatraro, 2021. "Firms’ growth, green gazelles and eco-innovation: evidence from a sample of European firms," Small Business Economics, Springer, vol. 56(4), pages 1721-1738, April.
    8. Costantini, Valeria & Crespi, Francesco & Palma, Alessandro, 2017. "Characterizing the policy mix and its impact on eco-innovation: A patent analysis of energy-efficient technologies," Research Policy, Elsevier, vol. 46(4), pages 799-819.
    9. Jana Hojnik, 2017. "In Pursuit of Eco-innovation," UPP Monograph Series, University of Primorska Press, number 978-961-7023-53-4.
    10. Chen Feng & Beibei Shi & Rong Kang, 2017. "Does Environmental Policy Reduce Enterprise Innovation?—Evidence from China," Sustainability, MDPI, vol. 9(6), pages 1-24, May.
    11. 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.
    12. Claudia Ghisetti & Francesco Quatraro, 2013. "Beyond inducement in climate change: Does environmental performance spur environmental technologies?," Post-Print hal-00860045, HAL.
    13. Durán-Romero, Gemma & López, Ana M. & Beliaeva, Tatiana & Ferasso, Marcos & Garonne, Christophe & Jones, Paul, 2020. "Bridging the gap between circular economy and climate change mitigation policies through eco-innovations and Quintuple Helix Model," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    14. Ren, Shenggang & Hu, Yucai & Zheng, Jingjing & Wang, Yangjie, 2020. "Emissions trading and firm innovation: Evidence from a natural experiment in China," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    15. Joana Costa, 2021. "Carrots or Sticks: Which Policies Matter the Most in Sustainable Resource Management?," Resources, MDPI, vol. 10(2), pages 1-21, February.
    16. Patricia Laurens & Christian Le Bas & Stéphane Lhuillery & Antoine Schoen, 2017. "The determinants of cleaner energy innovations of the world’s largest firms: the impact of firm learning and knowledge capital," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 26(4), pages 311-333, May.
    17. Filiou, Despoina & Kesidou, Effie & Wu, Lichao, 2023. "Are smart cities green? The role of environmental and digital policies for Eco-innovation in China," World Development, Elsevier, vol. 165(C).
    18. Lu, Yunguo & Zhang, Lin, 2022. "National mitigation policy and the competitiveness of Chinese firms," Energy Economics, Elsevier, vol. 109(C).
    19. García-Sánchez, Isabel-María & Aibar-Guzmán, Cristina & Aibar-Guzmán, Beatriz, 2020. "The effect of institutional ownership and ownership dispersion on eco-innovation," Technological Forecasting and Social Change, Elsevier, vol. 158(C).
    20. Francesco Crespi & Claudia Ghisetti & Francesco Quatraro, 2015. "Environmental and innovation policies for the evolution of green technologies: a survey and a test," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 5(2), pages 343-370, December.

    More about this item

    Keywords

    Climate change; eco-innovation; Community Innovation Survey; probit regression; treatment effect 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
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:zewdip:22008. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zemande.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.