Eco-innovation and regulatory push/pull effect in the case of REACH regulation: empirical evidence based on survey data

N. Arfaoui

Applied Economics, 2018, vol. 50, issue 14, 1536-1554

Abstract: Numerous theoretical and empirical studies provide evidence of a positive correlation between eco-innovation and environmental regulation. However, few analyses explain how environmental policies drive eco-innovation. This article studies 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 appropriate and original for analysing the relationship between environmental regulation and eco-innovation. The primary contribution of this article is to provide a new theoretical and empirical perspective on eco-innovation by showing how design regulation is able to push and pull the environment innovation, based on an original survey related to REACH regulation. The econometric model shows that (1) regulatory-push mechanisms seem to be more important drivers than regulatory-pull mechanisms; (2) the process of authorization and the obligation to transmit information throughout the supply chain play an important role in ‘pushing’ eco-innovation, suggesting that policymakers should promote new ‘green knowledge’ to encourage eco-innovation; (3) extending obligations has a significantly positive effect on ‘pulling’ eco-innovation and (4) only well-designed instruments, appropriate for the techno-industrial and institutional contexts in which they are to be applied, lead to innovation.

Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://hdl.handle.net/10.1080/00036846.2017.1368989 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:applec:v:50:y:2018:i:14:p:1536-1554

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/00036846.2017.1368989

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().