Linking emission trading to environmental innovation: Evidence from the Italian manufacturing industry

Borghesi, Simone; Cainelli, Giulio; Mazzanti, Massimiliano

doi:10.1016/j.respol.2014.10.014

Cited by 415 publications

(237 citation statements)

References 83 publications

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“…Nevertheless, the positive influence of R&D on environmental innovation is not always confirmed in the literature. The influence of R&D intensity is found to be lower in environmental innovators than in non-environmental innovators [31] or R&D resources do not influence the level of environmental innovation [32].…”

Section: Drivers Of Eco-innovationmentioning

confidence: 78%

“…Similarly, Borghesi et al [32] enhance the role of acquisition of external knowledge considering a sample of 6000 Italian manufacturing firms facing CO 2 abatement and climate change. In the same direction, cooperation with universities and public and private research agencies is also one of the most important innovation sources in eco-innovation [17].…”

Section: Drivers Of Eco-innovationmentioning

confidence: 99%

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Environmental Innovation and Employment: Drivers and Synergies

2017

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Numerous empirical studies focus on the drivers of environmental innovation or their potential employment effects. Nevertheless, we have scarce knowledge about whether factors that influence eco-innovation and employment generation are related. The main purpose is to analyze the synergies between eco-innovation and employment using a sample of more than 6000 innovative Spanish manufacturing and service firms. Using different econometric procedures, the main findings show that size, R&D and export influence eco-innovation and employment in the same direction, while age, belonging to a group, public subsidies and internal and external knowledge sources exert a different effect. Thus, older firms create less employment but have a high probability of being environmental innovators compared with younger firms. Furthermore, the size of the company moderates the positive role of eco-innovation on employment growth, while young firms not belonging to a group (eco-entrepreneurs) contribute more to employment growth than old firms belonging to a parent firm. Implications for scholars, managers and policy makers in terms of sustainable and economic growth are made.

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Section: Drivers Of Eco-innovationmentioning

confidence: 78%

Section: Drivers Of Eco-innovationmentioning

confidence: 99%

Environmental Innovation and Employment: Drivers and Synergies

2017

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“…TGCs) favored the development of wind energy, whereas direct investment incentives such as FITs are deemed effective in supporting innovation in solar and waste-toenergy technologies. Conversely, Borghesi et al (2015) provided less clear-cut evidence on the effects of environmental policies to promote the development of cleaner energy technologies. While confirming the importance of well-designed, long-term and time-consistent policies, they also noted that the impact of certain schemes such as the EU-ETS is dependent on several sector-specific factors.…”

Section: Innovation Support Mechanisms For Environmental Technologiesmentioning

confidence: 99%

Does Economic Growth Matter? Technology-Push, Demand-Pull and Endogenous Drivers of Innovation in the Renewable Energy Industry

2014

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This paper aims to contribute to the longstanding technology-push vs. demand-pull debate and to the literature on renewable energy policy assessment. We argue that in addition to the traditional push-pull dichotomy, the drivers of technological change must be differentiated by whether they are exogenous or endogenous to the economic system and must be assessed with respect to their contribution to both the creation and the diffusion of innovation. We apply this perspective to study innovation in the renewable energy (RE) industry in 15 European Union countries from 1990 to 2012. Using different panel data estimators, we find that public R&D investments, policies supporting RE and per capita income all have a positive effect on either innovation creation or diffusion, whereas the variability of policy support has a negative impact on diffusion. However, impacts are heterogeneous and differ depending on the innovation dimension considered. Most importantly, we find that economic growth is a stronger driver of RE diffusion than technology-push or exogenous demand-pull mechanisms, whereas it is relatively ineffective at stimulating innovation creation. The effect of economic growth on RE diffusion exhibits a nonlinear, U-shaped pattern that resonates with the Environmental Kuznets Curve hypothesis. RE penetration remains negligible at low levels of growth whereas it increases sharply only after income per capita has reached a given threshold. This effect has both a direct cause (with increased affluence demand for environmental quality rises) and an indirect cause (with increased affluence expensive RE policies become more affordable and get implemented more extensively). Our findings have implications for policy making. They suggest that for RE diffusion to increase, innovation policies should be carefully balanced. Government action should be directed not only at shielding renewables from competition with fossil fuel technologies, but also at stimulating aggregated demand and economic growth.

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“…Some scholars have based their empirical analyses on surveys of managerial interviews (e.g., Hoffmann, 2007;Aghion et al, 2009;Martin et al, 2011;Rogge et al, 2011a,b;Schmidt et al, 2012), while others have tested the weak version of the Porter hypothesis introducing the EU ETS among the covariates of their econometric models (see Abrell et al, 2011;Borghesi et al, 2015;Calel and Dechezleprêtre, 2016). 19 Although this literature is still in its early stages of development and mainly focused on the early phases of the EU ETS due to a time lag in the data availability, the main conclusion that seems to emerge so far is that the EU ETS had at most a very weak impact on EI.…”

mentioning

confidence: 99%

“…Although 27 By stringency, we refer here to the effort imposed by the regulator according to the emission reduction target, which can be measured by the ratio of emissions to allocated allowances (cf. Borghesi et al, 2015). Notice, however, that the price of the emission allowances can also be seen as a proxy of regulation stringency, as it enters other measures of environmental policy stringency, such as the Pollution Abatement Cost Expenditures and the survey-based perception of stringency.…”

mentioning

confidence: 99%

The Best (and Worst) of GHG Emission Trading Systems: Comparing the EU ETS with Its Followers

Borghesi

Montini

2016

Front. Energy Res.

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The European Emission Trading System (EU ETS) is generally considered as the prototype system for the other Emission Trading Systems (ETSs) for the reduction of greenhouse gases (GHGs) that are rapidly spreading around the world. To get a deeper understanding on the actual capacity of the EU ETS to stand as a model for the other ETSs, the present paper discusses the differences and similarities of the EU ETS with respect to the other main ETSs and the emerging trends that these systems seem to share, comparing the different cap-and-trade regimes in order to identify the best practices and the desirable features that future ETSs should have. As emerges from the comparative analysis performed in this article, although the followers share some common flaws with the EU ETS, they have also shown the capacity to innovate and possibly devise alternative ways to manage their own ETS regimes, which may in the long term jeopardize the EU leadership in the ETSs context.

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Linking emission trading to environmental innovation: Evidence from the Italian manufacturing industry

Cited by 415 publications

References 83 publications

Environmental Innovation and Employment: Drivers and Synergies

Environmental Innovation and Employment: Drivers and Synergies

Does Economic Growth Matter? Technology-Push, Demand-Pull and Endogenous Drivers of Innovation in the Renewable Energy Industry

The Best (and Worst) of GHG Emission Trading Systems: Comparing the EU ETS with Its Followers

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