Stimulating Different Types of Eco-Innovation in the UK: Government Policies and Firm Motivations

Pelin Demirel (pelin.demirel@nottingham.ac.uk) and Effie Kesidou
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Pelin Demirel: Nottingham University Business School, Nothingham University

No 1203, STPS Working Papers from STPS - Science and Technology Policy Studies Center, Middle East Technical University

Abstract: In this paper, we adopt a recent OECD framework and examine the role of external policy tools and internal firm specific factors for stimulating three different types of eco-innovations that range on a spectrum of lower to higher technological and environmental impact: End-of-Pipeline Pollution Control Technologies, Integrated Cleaner Production Technologies and Environmental R&D. Using a novel firm-level dataset from a DEFRA survey, we estimate a Tobit model, which provides empirical evidence showing that these eco-innovations are motivated by different external policy tools and internal firm specific factors. Our findings indicate that End of Pipeline Technologies and Integrated Cleaner Production Technologies are mainly driven by equipment upgrade motives with a view of improving efficiency while environmental regulations are effective in stimulating the End-of-Pipeline technologies and Environmental R&D. Interestingly, alongside government induced regulations, we find that market factors, mainly motivated by cost savings, are effective in driving Environmental R&D. Finally, ISO14001 certification is effective in strengthening the positive impact of environmental management systems on both End-of-Pipeline technologies and Environmental R&D while CSR policies have no significant impact on motivating any of the eco-innovations.

Keywords: Cleaner Production; Environmental Regulation; Environmental Taxes; Environmental Management Systems; Eco-R&D; ISO14001 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2012-05, Revised 2012-05
New Economics Papers: this item is included in nep-agr, nep-cse, nep-env, nep-eur, nep-ino and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Related works:
Journal Article: Stimulating different types of eco-innovation in the UK: Government policies and firm motivations (2011)
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