Firms are influenced by internal factors (resources and capabilities) and external factors (e.g., regulation) when taking the decision to eco-innovate. However, the analysis of the internal factors has received much less attention than the external ones. This paper aims to fill this gap in the literature by analyzing the role of resources, competences and dynamic capabilities (RCCs) as determinants (drivers and barriers) of different eco-innovation (EI) types. Those EI types contribute differently to the sustainable transition of the economy and society, i.e., towards the Circular Economy. The statistical analyses reveal that RCCs are quite relevant as determinants of EIs and that different RCCs are more or less relevant for different EI types. In particular, the determinants of systemic and radical EIs substantially differ from those for continuous improvements. Our results suggest that physical RCCs, involvement in green supply chains, an EI-friendly corporate culture, technology-push and market-pull and internal financing resources represent drivers to these EIs, whereas cooperation, organizational learning, an ISO ecological certification and technological path dependency are barriers. The results may guide firms to pursue competitive and sustainable advantage by innovating through certain EI types corresponding to available and dedicated RCCs. They may also be useful to policy makers who are willing to promote specific EI types.

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The circular economy (CE) and eco-innovation (EI) are two concepts deemed instrumental in achieving a sustainable transition. They have been proposed in the academic literature and by practitioners and have acquired very high public policy relevance, being endorsed by policymakers and ultimately leading to regulations supporting them. It has been argued that both concepts are compatible and interrelated and that EI is instrumental in achieving the CE. However, little is known about how different EI features contribute to the CE at the microlevel. This article tries to cover this gap. Its aim is to assess and quantify the causal relationship between different EI features and the CE with the help of a unique dataset of small-and medium-sized firms in Spain and an econometric analysis. Our results show that only systemic EIs contribute to a global CE, whereas other EI types such as component additions or small changes in existing production processes could even be barriers to high levels of circularity. It is found out that technological novelty is not relevant for reaching the CE. The results support the understanding of how EIs enable a transition to the CE. Care should be taken not to promote incremental EIs that do not only achieve low (or no) circularity but that effectively lock-in the economic system in solutions that entail a barrier to the achievement of high-level circularity.

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We investigate whether political ideology has an observable effect on decarbonization ambition, renewable power aims, and preferences for power system balancing technologies in four European countries. Based on the Energy Logics framework, we identify ideologically different transition strategies (state-centered, market-centered, grassroots-centered) contained in government policies and opposition party programs valid in 2019. We compare these policies and programs with citizen poll data. We find that ideology has a small effect: governments and political parties across the spectrum have similar, and relatively ambitious, decarbonization and renewables targets. This mirrors citizens' strong support for ambitious action regardless of their ideological self-description. However, whereas political positions on phasing out fossil fuel power are clear across the policy space, positions on phasing in new flexibility options to balance intermittent renewables are vague or non-existent. As parties and citizens agree on strong climate and renewable power aims, the policy ambition is likely to remain high, even if governments change.

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The use of the European Union cooperation mechanisms for concentrated solar power (CSP) projects could kill two birds with one stone. First, CSP electricity can cover demand when variable renewables cannot generate. Second, CSP projects deployed under the cooperation mechanisms could contribute to a European-wide optimisation of resource use and grid management. This paper analyses whether the dispatchable nature of CSP is a main driver to the use of the cooperation mechanism for this technology. Based on an expert elicitation and a survey to different types of stakeholders, our results show that, indeed, dispatchability will be the main driver to the use of the cooperation mechanisms for CSP projects in the future. The findings suggest that two types of policy interventions will be required to encourage the use of these mechanisms for CSP. Some policy measures should be directed at the technology itself, whereas other policies should target the cooperation mechanisms..

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