Eco-innovation and Regulatory Push/Pull Effect in the Case of REACH Regulation: Empirical Evidence from Survey Data

Nabila Arfaoui ()

No 2014-19, GREDEG Working Papers from Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France

Abstract: Numerous theoretical and empirical studies demonstrate a positive correlation between eco-innovation and environmental regulation. However, only few analyses explain how environmental policies drive eco-innovation. This paper attempts to fill this gap by studying eco-innovation-friendly mechanisms in the design of European REACH (Registration, Evaluation, Authorization of Chemicals) regulation. The aim of REACH, which became effective in 2007, is "to ensure a high level of protection of human health and the environment while improving competitiveness and innovation", which makes it an appropriate and original object for analysing the relationship between environmental regulation and eco-innovation. The primary contribution of this paper is to bring, from an original survey on REACH regulation, a new theoretical and empirical lens to the field of eco-innovation by showing how design regulation is able to push and pull the environment. We find that: (1) the process of authorization, and the obligation to transmit information throughout the supply chain play an important role in “pushing” eco-innovation. This stresses that policy makers should promote new “green knowledge” to encourage eco-innovation; (2) extending responsibility has a significantly positive effect on “pulling” eco-innovation; and (3) only well-designed instruments, appropriate to the techno-industrial and institutional contexts in which they will be applied, lead to innovation.

Keywords: Eco-innovation; REACH; Regulatory Push/Pull Effect; Econometric Modelling (search for similar items in EconPapers)
JEL-codes: C51 Q55 Q58 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2014-06, Revised 2015-12
New Economics Papers: this item is included in nep-env, nep-eur, nep-ino and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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