Heterogeneity of Green Expenditure, Firms’ Performances and Wages: Italian Evidence on Circular Economy, Resource-saving and Energy Efficiency Investments

Francesco Quatraro and Andrea Ricci ()
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Andrea Ricci: University of Turin, http://www.est.unito.it/

Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio Carlo Alberto. WP series from University of Turin

Abstract: This paper analyses the relationship between firms’ investment in green technologies and competitive performance. At this aim, we take advantage of new data on the adoption of different green technologies (circular economy, technical advancements, energy savings, efficiency gains) from a large representative sample of Italian firms. We find the following results. First, overall green investment increases the sales per employee and average wages. Second, we show a significant heterogeneity in the estimated effect across different green technologies. These results are robust to an econometric strategy that controls for a large set of observed characteristics, time-invariant unobserved heterogeneity and endogeneity issues. In sum, our results support the hypothesis that the ongoing ecological transformation of productive processes may favor firms’ competitiveness but substantial heterogeneity still matters. The policy implications are then discussed.

Pages: pages 36
Date: 2023-12
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Working Paper: Heterogeneity of Green Expenditure, Firms’ Performances and Wages: Italian Evidence on Circular Economy, Resource-saving and Energy Efficiency Investments (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:uto:labeco:202305

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