17 research outputs found
Unmasking the Porter hypothesis: Environmental innovations and firm-profitability
We examine impacts of different types of environmental innovations on firm profits. Following Porter's (1991) hypothesis that environmental regulation can improve firms' competitiveness we distinguish regulation induced and voluntary environmental innovations. We find that innovations which reduce environmental externalities reduce firms' profits, as long as they are induced by regulations. However, innovation that increases a firm's material or energy efficiency in terms of material or energy consumption has a positive impact on profitability. This positive result holds both for regulation induced and voluntary innovations, although the effect is significantly larger for regulation-driven innovation.We conclude that the Porter hypothesis does not hold in general for its 'strong' version but has to be qualified by the type of environmental innovation. Our finding rest on firm level data from the German part of the Community Innovation Survey in 2009. --Environmental innovation,environmental regulation,Porter hypothesis,competitiveness
Long-term impacts of environmental policy and eco-innovative activities of firms
This paper analyses two aspects of environmental regulations triggered by ecoinnovations. First, whether there are long term effects of regulation on innovation. Second, whether the impact of different types of regulation differ by type of the environmental benefit of the innovations. To answer these questions, the paper uses firm level data from the German part of the Community Innovation Survey 2009, in which companies were asked to cite the respective regulations to be responsive for the firmsâ introduced environmental related innovations. Regulations quoted by firms are classified into several policy types and also the age the respective regulations are calculated. We find evidence for long-term effects of environmental regulation on innovation. Furthermore, different types of regulations varied with respect to their impact on several environmental benefits of innovations
Good enough! Are socially responsible companies the more successful environmental innovators?
The link between Corporate Social Responsibility (CSR) activities and financial performance of firms has been intensively examined and debated in academics and politics, but the connection to innovation has so far lacked research attention. This paper investigates whether CSR is complementary to environmental innovations, so that a joint introduction of both strategies generates a higher financial performance than the application of one or none of the strategies. We analyse if environmental innovators can generate higher financial performance by signalling their environmental engagement through CSR. For this purpose, we use panel data of environmental R&D activity together with a CSR variable on the Global Reporting Initiative (GRI) and analyse their effect on the financial performance of a firm. The novelty of our work is the complementary approach with which we examine the effect of a joint strategy of environmental R&D and CSR on financial performance. Although our results support the view of strategic complements for environmental R&D and GRI, we cannot conclude that this is also true for other types of CSR signalling environmental engagement
Policy-induced environmental technology and inventive efforts : is there a crowding out?
Significant policy effort is devoted to stimulate the development, adoption and diffusion of environmentally-
friendly technology. Sceptics worry about the effects of regulation-induced environmental
technology on firmsâ competitiveness. Since innovation is a crucial productivity driver, a potential
crowding out of inventive efforts could increase the cost of mitigating environmental damage.
Using matching techniques, we study the short-term effects of regulation-induced environmental
technology on non-green innovative activities for a sample of firms in Germany. We find indeed
some evidence for a crowding out of the firmsâ in-house R&D. The estimated treatment effect is
larger for firms that are likely to face financing constraints. However, we do not find negative
effects on the number of ongoing R&D projects, investments in innovation-related fixed assets or
on the outcome of innovation projects. Likewise, for firms with subsidy-backed environmental innovations
no crowding out is found
Invention in energy technologies : comparing energy efficiency and renewable energy inventions at the firm level
Many countries, especially in Europe, have ambitious goals to transform their national
energy systems towards renewable energies. Technological change in both renewable production
and efficient use of energy can help to make these targets come true. Using a panel of German
firms linked to the PATSTAT patent data, we study invention in both types of energy technologies
and how their inventors differ in terms of central firm-specific characteristics. More importantly,
we study the relation between conventional (i.e. non-energy) invention and energy invention
within the firms. The results from dynamic count data models point to a stimulating effect of
conventional inventions for energy efficiency technologies but have no effect on inventions in renewable
energies
Unmasking the Porter hypothesis : environmental innovations and firm-profitability
We examine impacts of different types of environmental innovations on firm profits. Following Porterâs (1991) hypothesis that environmental regulation can improve firmsâ competitiveness we distinguish regulation induced and voluntary environmental innovations. We find that innovations which reduce environmental externalities reduce firmsâ profits, as long as they are induced by regulations. However, innovation that increases a firmâs material or energy efficiency in terms of material or energy consumption has a positive impact on profitability. This positive result holds both for regulation induced and voluntary innovations, although the effect is significantly larger for regulation-driven innovation.We conclude that the Porter hypothesis does not hold in general for its âstrongâ version but has to be qualified by the type of environmental innovation. Our finding rest on firm level data from the German part of the Community Innovation Survey in 2009
Green innovations and organizational change: making better use of environmental technology
The literature on within-firm organizational change and productivity suggests that
firms can make more efficient use of certain technologies if complementary forms of organization
are adopted. This issue may be of even greater importance for the case of greenhouse gas (GHG)
abatement technologies imposed by public authority as to reduce social costs of climate change
while they are not necessarily expected to increase private returns. Previous research, however, has
largely neglected this aspect. Using German firm-level data, we find that organizational change increases
the returns to the use of CO2 reducing technologies and that joint adoption leads to higher
productivity. Without having introduced complementary organizational innovations, the adoption
of CO2 reducing technologies is associated with lower productivity
Trade and the environment: an application of the WIOD database
The new WIOD database allows for improved empirical analysis on a wide range of
important environmental research questions. In this paper we demonstrate the scientific power
of the WIOD database and analyze very urgent policy questions on the impacts of international
trade and structural change on the environment. We apply recent econometric approaches to
show the impact of international trade on the environment via its different channels as for instance
to increase welfare and potentially affects environmental regulation as well as countriesâ
sector. This approach has become known as the econometric structural decomposition method.
In addition to this guidelines by the literature, an econometric panel data approach is offered
to shed some light on the impact of structural change and international trade on environmental
pressure, where we especially address and solve several endogeneity issues that add further
complexity to the analysis
From less promising to green? : technological opportunities and their role in (green) ICT innovation
This paper aims to shed light on the role of technological opportunities for green innovation by
studying the case of Green ICT innovation. We test two hypotheses: (1) Firms active in low-opportunity
technological areas are less innovative; (2) Firms active in low-opportunity technological areas are more
likely to change their direction of technical change. To do so, we construct a firm-level panel data set for
the years 1992-2009 combining patent data from the European Patent Office with firm-level data from the
German Innovation Panel (Mannheim Innovation Panel). The results are based on dynamic count data
estimation models applying General Methods of Moments estimators. Our results support our hypotheses:
firms active in low-opportunity technological areas are less innovative but are more likely to switch from
pure ICT innovation to Green ICT innovation
ICT and the demand for energy : evidence from OECD countries
This paper analyzes the relationship between information and communication
technology (ICT) and energy demand. We construct a comprehensive cross-country
cross-industry panel data set covering 13 years, 10 OECD countries, and 27 industries.
Using up to 2889 country-industry observations, we find that: (1) ICT capital
is associated with a significant reduction in energy demand. (2) This relationship
differs with regard to different types of energy. ICT use is not significantly correlated
with electricity demand, but is significantly related to a reduction in non-electric energy
demand. That is, ICT use comes with a reduction in total energy demand and
an increase in the relative demand for electric over non-electric energy