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Environmental regulation and eco-innovation : insights from diffusion of innovations theory
Author
Source
Maghreb Review of Economics and Management
Issue
Vol. 3, Issue 1 (31 Mar. 2016), pp.112-129, 18 p.
Publisher
Publication Date
2016-03-31
Country of Publication
Algeria
No. of Pages
18
Main Subjects
Abstract EN
The paper analyses the relationship between environmental regulation and environmental innovation based on the diffusion of innovations theory.
The relationship is tested using a German firm-based panel and a Count Data model, over a short period of time with a large number of observations.
We estimate the propensity of firms to innovate in response to five initiating factors, namely the fulfilment of legal requirements, expectations towards legal requirements, public funding, demand for environmental innovations and self-commitment.
We also control for R&D intensity, the region and the sector of the company and filter for companies that account for their environmental impact.
The results answer the central question concerning the design of environmental policies in order to foster innovation.
Comparing a static model to a dynamic one, we show that only dynamic and market-based policies are positively associated with environmental innovation.
Conventional regulatory tools, namely technology-based command and control, are not effective for triggering innovative behaviour at the firm level.
Lastly, we show that environmental regulation is a necessary condition foreco-innovation.
American Psychological Association (APA)
Bitat, Abd al-Fatih. 2016. Environmental regulation and eco-innovation : insights from diffusion of innovations theory. Maghreb Review of Economics and Management،Vol. 3, no. 1, pp.112-129.
https://search.emarefa.net/detail/BIM-860868
Modern Language Association (MLA)
Bitat, Abd al-Fatih. Environmental regulation and eco-innovation : insights from diffusion of innovations theory. Maghreb Review of Economics and Management Vol. 3, no. 1 (Mar. 2016), pp.112-129.
https://search.emarefa.net/detail/BIM-860868
American Medical Association (AMA)
Bitat, Abd al-Fatih. Environmental regulation and eco-innovation : insights from diffusion of innovations theory. Maghreb Review of Economics and Management. 2016. Vol. 3, no. 1, pp.112-129.
https://search.emarefa.net/detail/BIM-860868
Data Type
Journal Articles
Language
English
Notes
Record ID
BIM-860868