The Employment Impact of Cleaner Production on the Firm Level Empirical Evidence from a Survey in Five European Countries

41 Pages Posted: 11 Feb 2003

See all articles by Klaus Rennings

Klaus Rennings

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: March 15, 2001

Abstract

This paper analyses the determinants of employment reactions of firms when environmental innovations have been carried out. It differentiates hereby between employment increases and decreases. The data stem from a telephone survey covering more than 1500 firms in five European countries that have introduced environmental innovations recently. Environmentally beneficial product and service innovations create jobs in contrast to process innovations. Employment changes occur in the wake of major innovations only and especially in small firms and firms with positive sales expectations. While innovations purely motivated by environmental goals tend not to have employment effects, cost reductions envisaged by environmental innovations reduce employment. We detect skill biased technological change of environmental innovations. Environmental innovations have a small but positive effect on employment on the firm level. Thus, environmental support programmes do not counteract labour market policy. A further shift from end-of-pipe technologies to cleaner production, especially towards product and service innovations, would be beneficial for the environment and creates jobs.

Keywords: Environmental technologies, cleaner production, innovation, labour demand

JEL Classification: Q50, J23, O33

Suggested Citation

Rennings, Klaus and Zwick, Thomas, The Employment Impact of Cleaner Production on the Firm Level Empirical Evidence from a Survey in Five European Countries (March 15, 2001). ZEW Discussion Paper No. 01-08. Available at SSRN: https://ssrn.com/abstract=336522 or http://dx.doi.org/10.2139/ssrn.336522

Klaus Rennings (Contact Author)

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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