Employment Changes in Environmentally Innovative Firms

24 Pages Posted: 30 Sep 2002

See all articles by Klaus Rennings

Klaus Rennings

Center for European Economic Research (ZEW)

Andreas Ziegler

Center for European Economic Research (ZEW)

Thomas Zwick

University of Würzburg - Business Administration & Economics; Centre for European Economic Research (ZEW); Maastricht University - Research Centre for Education and the Labour Market (ROA)

Date Written: August 15, 2001

Abstract

This paper analyses the determinants of employment reactions induced by environmental innovations. On the basis of the parameter estimates of the Multinomial Logit and of several Multinomial Probit Models, we show that we have to distinguish between the factors that have an impact on employment increases and employment decreases. The data stem from a telephone survey covering about 1600 firms in five European countries that introduced eco-innovations recently. Environmental product and service innovations increase significantly the probability of creating jobs. Thus, supporting these innovations does not counteract labour market policy. In contrast to this, end-of-pipe eco-innovations increase the risk of destroying jobs, however at a higher significance level. Environmental innovations are skill-biased, they have a significant impact on employment changes if they are substantial and if they are induced by regulations. Firms expecting increasing sales are more prone to increase employment, while firms that want to slash costs by innovation and compete by soft factors decrease employment more frequently.

Keywords: Innovation, labour demand, discrete choice models

JEL Classification: C25, J23, O33

Suggested Citation

Rennings, Klaus and Ziegler, Andreas and Zwick, Thomas, Employment Changes in Environmentally Innovative Firms (August 15, 2001). ZEW Discussion Paper No. 01-46. Available at SSRN: https://ssrn.com/abstract=329120 or http://dx.doi.org/10.2139/ssrn.329120

Klaus Rennings (Contact Author)

Center for European Economic Research (ZEW) ( email )

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

Andreas Ziegler

Center for European Economic Research (ZEW) ( email )

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

Thomas Zwick

University of Würzburg - Business Administration & Economics ( email )

Sanderring 2
Wuerzburg, D-97070
Germany

Centre for European Economic Research (ZEW) ( email )

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

Maastricht University - Research Centre for Education and the Labour Market (ROA) ( email )

P.O. Box 616
Maastricht, MD6200
Netherlands

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