Environmental protection, innovation and price-setting behavior in Spanish manufacturing firms
Carlos de Miguel and
Consuelo Pazó ()
Energy Economics, 2017, vol. 68, issue S1, 116-124
In this paper, we analyze the effects of environmental protection regulation on process and product innovation decisions and their impact on price-setting behavior in Spanish manufacturing firms throughout 2009–2014. To this end, we estimate several discrete choice probit models using firm-level data. Our results show a positive relationship between the existence of environmental regulations (environmental expenditures as a proxy) and innovation. However, the magnitude of the effects and their significance depend on the type of innovation and the size of the firms: environmental regulation positively impacts process innovation only in large firms (>200 workers) while it positively impacts product innovation exclusively in small firms (up to 200 workers). Taking into account innovation activities, we additionally explore the behavior of product prices. We obtain that process innovation increases the probability of reducing prices for both small and large firms; while product innovation only raises the likelihood of increasing prices for the former. Finally, we look into the determinants of investment in environmental protection and find a positive impact of environmental regulation.
Keywords: Environmental expenditure; Environmental investment; Innovation; Price-setting; Porter hypothesis (search for similar items in EconPapers)
JEL-codes: D22 O31 Q52 Q55 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:68:y:2017:i:s1:p:116-124
Access Statistics for this article
Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant
More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().