Brown Sunsets and Green Dawns in the Industrial Sector: Environmental Innovations, Firm Behavior and the European Emission Trading

33 Pages Posted: 15 Feb 2012

See all articles by Simone Borghesi

Simone Borghesi

University of Siena - Dept. of Political and International Sciences; European University Institute

Giulio Cainelli

Università degli Studi di Bari - Dipartimento per lo Studio delle Societa Mediterranee; CERIS-CNR

Massimiliano Mazzanti

University of Ferrara

Date Written: February 14, 2012

Abstract

We study the driving forces behind the adoption of environmental innovations (EI) in the Italian industry over 2006-2008 through analyses of the new wave of Community Innovation Survey (CIS) data that covered for the first time environmental innovation adoptions. We investigate whether the first phase of EU ETS has exerted some effects on environmental innovations by using a very large sample of Italian manufacturing firms. Estimates show that external forces and complementarity with other management practices are particularly relevant to increase the adoption of relatively new and radical technologies: relationships with other firms and institutions, local public funding, group membership are the key factors. The role of ETS on EI seems instead to be weak: it drives innovation if we compare ETS and non ETS firms, but the stringency itself does not matter, due to sector idiosyncratic factors and to the fact that stability of policy also matters.

Keywords: environmental innovation, industrial sectors, ETS, innovation drivers, CIS data

JEL Classification: C21, L2, O33, Q38, Q55

Suggested Citation

Borghesi, Simone and Cainelli, Giulio and Mazzanti, Massimiliano, Brown Sunsets and Green Dawns in the Industrial Sector: Environmental Innovations, Firm Behavior and the European Emission Trading (February 14, 2012). FEEM Working Paper No. 3.2012. Available at SSRN: https://ssrn.com/abstract=2004968 or http://dx.doi.org/10.2139/ssrn.2004968

Simone Borghesi (Contact Author)

University of Siena - Dept. of Political and International Sciences ( email )

via Mattioli, 10
I-53100 Siena
Italy

European University Institute ( email )

Villa Schifanoia
133 via Bocaccio
Firenze (Florence), Tuscany 50014
Italy

HOME PAGE: http://https://me.eui.eu/simone-borghesi

Giulio Cainelli

Università degli Studi di Bari - Dipartimento per lo Studio delle Societa Mediterranee ( email )

Piazza Umberto I
70124 Bari, 70121
Italy

CERIS-CNR ( email )

Via Avogadro 8
10121 Torino
Italy

Massimiliano Mazzanti

University of Ferrara ( email )

C.so Ercole I° d'Este 37
Ferrara, 44100
Italy

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