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Carbon dioxide reducing environmental innovations, sector upstream/downstream integration and policy: evidence from the EU

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  • Massimiliano Mazzanti
  • Giovanni Marin
  • Susanna Mancinelli
  • Francesco Nicolli
Abstract
Eco innovations (EI) that address climate change mitigation require pressures and knowledge from outside the firm’s and sector’s boundaries, due to the radicalness and variety of techno-organisational knowledge the economy needs to curb emissions by 90 % in the long run and 40 % in the medium run, at least according to EU targets. The role of policy as a tool that potentially tackles two externalities—innovation and environmental market failures—has been studied over the past decade. Sector integration, which is increasingly relevant for understanding the economic, environmental and innovation performances of countries, might additionally influence innovations, and it is relatively overlooked. We integrate these two perspectives to provide evidence on the adoption of EI in EU sectors over 2006–2008. Using past CO 2 emission intensity as a proxy of policy stringency we find that emission intensive sectors are more likely to adopt CO 2 -related eco-innovations. The aforementioned results are valid for both the economy as a whole and for industrial sectors specifically. We additionally show that inter sector integration and knowledge sources matter: we do observe that sectors with more emission intensive upstream ‘partners’ eco-innovate more to reduce their CO 2 footprints. The positive and significant effect of upstream emission intensity (supplier’s emission intensity) on EI is actually stronger than the effect of ‘direct’ CO 2 emission intensity (policy effect). Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Massimiliano Mazzanti & Giovanni Marin & Susanna Mancinelli & Francesco Nicolli, 2015. "Carbon dioxide reducing environmental innovations, sector upstream/downstream integration and policy: evidence from the EU," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 42(4), pages 709-735, November.
    • Handle: RePEc:kap:empiri:v:42:y:2015:i:4:p:709-735
    DOI: 10.1007/s10663-014-9273-z
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    Cited by:

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    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.
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    5. Mazzanti, Massimiliano & Rizzo, Ugo, 2017. "Diversely moving towards a green economy: Techno-organisational decarbonisation trajectories and environmental policy in EU sectors," Technological Forecasting and Social Change, Elsevier, vol. 115(C), pages 111-116.

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    More about this item

    Keywords

    Environmental innovations; Sector integration; Induced effects; Innovation adoption; NAMEA; Input output; EU; Carbon abatement;
    All these keywords.

    JEL classification:

    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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