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A question of regulation or motivation? Environmental innovation activities in transition economies

Katharina Friz

No 2107, Bremen Papers on Economics & Innovation from University of Bremen, Faculty of Business Studies and Economics

Abstract: Environmental innovation (EI) plays an important role in decoupling economic growth and environmental harm. This paper focuses on the environmental innovation behavior of companies in transition countries of Eastern Europe and Central Asia, which have been little studied so far. These countries share the Soviet legacy of environmental mismanagement, and have restructured their innovation systems relatively recently in the course of transition. The EBRD-EIB-WB Enterprise Survey (2018-2020) allows us to examine the determinants of environmental innovation in 29 transition countries. Although the theory places a greater emphasis on external sources of knowledge in EI, the results indicate that collaborative R&D is still quite weak in these countries. Moreover, environmental regulation increases the likelihood of adopting energy efficiency measures, while customers demanding environmental standards increase the likelihood across all innovation activities, indicating an increasing sustainability awareness among consumers.

Keywords: Environmental innovation; transition economies; firm-level data; logit model (search for similar items in EconPapers)
JEL-codes: O12 O31 O32 O5 Q55 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2021-09
New Economics Papers: this item is included in nep-cis, nep-cse, nep-ene, nep-env, nep-ino, nep-sbm and nep-tra
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DOI: 10.26092/elib/1107

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