Long-Term Impacts of Environmental Policy and Eco-Innovative Activities of Firms

24 Pages Posted: 22 Oct 2010

See all articles by Klaus Rennings

Klaus Rennings

Center for European Economic Research (ZEW)

Sascha Rexhauser

ZEW – Leibniz Centre for European Economic Research

Date Written: 2010

Abstract

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 firms’ 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.

Keywords: Environmental policy, environmental innovation, innovation surveys

JEL Classification: Q55, Q58, Q01, C83

Suggested Citation

Rennings, Klaus and Rexhauser, Sascha, Long-Term Impacts of Environmental Policy and Eco-Innovative Activities of Firms (2010). ZEW - Centre for European Economic Research Discussion Paper No. 10-074. Available at SSRN: https://ssrn.com/abstract=1695415 or http://dx.doi.org/10.2139/ssrn.1695415

Klaus Rennings (Contact Author)

Center for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

Sascha Rexhauser

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

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