This paper investigates the link between environment related innovation and job creation at firm ... more This paper investigates the link between environment related innovation and job creation at firm level. Employing Italian data on 4,507 manufacturing firms, matched with patent records for the period 2001-2008, we test whether "green" innovation, measured using the number of environment related patents, has a positive effect on long run employment growth that is specific with respect to non environmental innovation. Results show a strong positive impact of "green" innovation on long run job creation, substantially bigger than the effect of other innovations. Our findings are robust to a number of additional tests including controls for cost differential between generic and "green" innovation and endogeneity.
♣ Lavoro realizzato e finanziato nell‟ambito del progetto ADRIABIO “Stato, ricadute economiche e ... more ♣ Lavoro realizzato e finanziato nell‟ambito del progetto ADRIABIO “Stato, ricadute economiche e profili giuridici della biodiversità marina costiera del nord Adriatico: creazione di un database di riferimento nell‟ambito del network globale „Census of Marine Life‟ ”, Workpackage 3 “Valutazione ambientale, economica e giuridica” realizzato dal Dipartimento di Biologia Evoluzionistica Sperimentale dell‟Università di Bologna. ... Un ringraziamento particolare ad Anna Montini (Università di Bologna) per la disponibilità e gli utili consigli nella stesura del lavoro.
The aim of this paper is to investigate the effect of environmental regulatory stringency on inno... more The aim of this paper is to investigate the effect of environmental regulatory stringency on innovation and productivity using a panel of 8 European countries for 13 manufacturing sectors over the years 2001–2007. This research topic falls under the heading of the Porter hypothesis (PH) of which different versions have been tested. We consider both the strong and the weak versions of the PH, while also adding some peculiar features to the analysis. Firstly, we assess the role played by environmental taxes, that is an instrument rarely tested as a factor which can support the PH. Secondly, we analyse not only the effect of environmental taxes within a given sector (within-sector), but also the role played by environmental taxes in upstream and downstream sectors in terms of input–output relationships. Thirdly, we test these relationships also ‘indirectly’ by verifying whether innovation is one of the channels through which higher sectoral productivity can be achieved by imposing tighter environmental regulations. Our main findings suggest that downstream stringency is the most relevant driver of innovation and productivity while within-sector regulations only affect productivity but not innovation. Moreover, the effect of regulations on productivity is mostly direct, while the part of the effect mediated by induced innovations, as measured by patents, is relevant only for what concerns downstream regulations.
Eco-innovation is an explicit aim of major EU policy strategies. Many environmental policies de f... more Eco-innovation is an explicit aim of major EU policy strategies. Many environmental policies de facto require firms to eco-innovate to comply with policy requirements, while the overlap between policy-driven and market-driven eco-innovation strategies is increasingly important for many firms. Barriers to eco-innovation can then emerge as a critical factor in either preventing or stimulating EU strategies, policy implementation, and the green strategies of firms. In this paper we focus on EU-27 SMEs. We single out and explore different firm profiles, considering eco-innovation barriers and engagement. Our analysis is based on a particularly suitable dataset: the Eurobarometer survey on "Attitudes of European entrepreneurs towards ecoinnovation". We identify six clusters of SMEs. These clusters include firms facing either 'Revealed barriers' or 'Deterring barriers', 'Cost deterred' firms, 'Market deterred' firms, 'Non eco-innovators', and 'Green champions'. The clusters display substantial differences in terms of eco-innovation adoption. We show that our taxonomy has little overlap with sector classifications. This diversity should be taken into account for successful environmental and innovation policies.
The catchword 'green skills' has been common parlance in policy circles for a while, yet there is... more The catchword 'green skills' has been common parlance in policy circles for a while, yet there is little systematic empirical research to guide public intervention for meeting the demand for skills that will be needed to operate and develop green technology. The present paper proposes a data-driven methodology to identify green skills and to gauge the ways in which the demand for these competences responds to environmental regulation. Accordingly, we find that green skills are high-level analytical and technical know-how related to the design, production, management and monitoring of technology. The empirical analysis reveals that environmental regulation triggers technological and organizational changes that increase the demand for hard technical, engineering and scientific skills. Our analysis suggests also that this is not just a compositional change in skill demand due to job losses in sectors highly exposed to trade and regulation.
The consideration of both the direct and the indirect effects of global production and trade is t... more The consideration of both the direct and the indirect effects of global production and trade is the first step in order to assess the sustainability of resource exploitation, in particular water usage. This paper applies the Global Multi-Regional Input-Output model to quantify the interdependencies of different sectors and to determine the overall water consumption of each country. This procedure allows the measurement of Virtual Water Trade, that is the volume of water embedded in traded goods. This paper introduces further extensions based on network analysis to overcome the limitations of I-O models. To the best of our knowledge, this is the first attempt to build a bridge between two different, but related, methodologies.
Eco innovations (EI) that address climate change mitigation require pressures and knowledge from ... more Eco innovations (EI) that address climate change mitigation require pressures and knowledge from outside the firm's and sector's boundaries, due to the radicalness and variety of techno-organisational knowledge the economy needs to curb emissions by 90 % in the long run and 40 % in the medium run, at least according to EU targets. The role of policy as a tool that potentially tackles two externalities-innovation and environmental market failures-has been studied over the past decade. Sector integration, which is increasingly relevant for understanding the economic, environmental and innovation performances of countries, might additionally influence innovations, and it is relatively overlooked. We integrate these two perspectives to provide evidence on the adoption of EI in EU sectors over 2006-2008. Using past CO 2 emission intensity as a proxy of policy stringency we find that emission intensive sectors are more likely to adopt CO 2 -related ecoinnovations. The aforementioned results are valid for both the economy as a whole and for industrial sectors specifically. We additionally show that inter sector integration and knowledge sources matter: we do observe that sectors with more emission intensive upstream 'partners' eco-innovate more to reduce their CO 2 footprints. The positive and significant effect of upstream emission intensity (supplier's emission intensity) on EI is actually stronger than the effect of 'direct' CO 2 emission intensity (policy effect).
INGENIO [CSIC-UPV] Ciudad Politécnica de la Innovación | Edif 8E 4º | Camino de Vera s/n | 46022 ... more INGENIO [CSIC-UPV] Ciudad Politécnica de la Innovación | Edif 8E 4º | Camino de Vera s/n | 46022 Valencia tel +34 963 877 048 | fax +34 963 877 991 | [email protected]
This paper investigates the link between environment related innovation and job creation at firm ... more This paper investigates the link between environment related innovation and job creation at firm level. Employing Italian data on 4,507 manufacturing firms, matched with patent records for the period 2001-2008, we test whether "green" innovation, measured using the number of environment related patents, has a positive effect on long run employment growth that is specific with respect to non environmental innovation. Results show a strong positive impact of "green" innovation on long run job creation, substantially bigger than the effect of other innovations. Our findings are robust to a number of additional tests including controls for cost differential between generic and "green" innovation and endogeneity.
This paper discusses the results for Italy of a CDM model (Crepon et al., 1998) further extended ... more This paper discusses the results for Italy of a CDM model (Crepon et al., 1998) further extended with the objective of evaluating drivers and productivity effects of environmental innovations. The particular nature of environmental innovations, especially as regards the need of government intervention to create market opportunities, is likely to affect the way through which they are pursued (innovation equation within the CDM model) and their effect on productivity (productivity equation).
The contribution of the paper is manifold. First, the drivers of environmental innovations (measured with environmental patents) are investigated by using mainly administrative data instead of survey data. Second, I investigate the extent to which firms with big polluting plants tend to bias their innovation strategies towards environmental technologies. Third, the return of environmental innovations is compared to the one of other innovations to indirectly assess the presence of a crowding out effect of environmental innovations at the expenses of other (possibly more profitable) innovations.
Results, based on administrative data (AIDA by Bureau van Dijk and patent data from PATSTAT) of Italian manufacturing firms, show that innovation efforts of polluting firms is significantly biased towards environmental innovations and that environmental innovations tend to crowd out other more profitable (at least in the short run) innovations.
We integrate input output and NAMEA tables for Spain and Italy in 1995, 2000 and 2005, in order t... more We integrate input output and NAMEA tables for Spain and Italy in 1995, 2000 and 2005, in order to address the hot policy issue of sustainable consumption and production. A comparison of production and consumption perspectives may have relevant policy implications. We deal with the domestic technology assumption and primarily the aggregation bias that may result when calculating indirect emission using different sector aggregations in the analyses (e.g. 16, 30, 50). Extended Input Output Analysis provides analyses of the emissions embodied in domestic consumption and domestic production by considering the structure of intermediate inputs and environmental efficiency in each production sector. Our empirical findings show that different sectoral aggregation significantly biases the amount of emissions for the consumption perspective, though differently in the two countries. Italy surprisingly show consumption/production ratios around or lower than one, but in line with some major work at EU level. Our results thus suggest that special attention must be paid when interpreting the EE-IOA of country estimated amounts of embodied emissions, both in domestic final demand and those directly associated with the production sectors when the sectoral aggregation level has a low definition as considered in some recent similar studies.
This paper provides new empirical evidence on delinking in income–environment dynamic relationshi... more This paper provides new empirical evidence on delinking in income–environment dynamic relationships for CO2 and air pollutants at the sector level. A panel dataset based on the Italian NAMEA (National Accounting Matrix including Environmental Accounts) over 1990–2007 is analyzed, focusing on both emissions efficiency (EKC model) and total emissions (IPAT model). Results show that, looking at sector evidence, both decoupling and also eventually re-coupling trends could emerge along the path of economic development. The overall performance on greenhouse gases, here CO2, is not compliant with Kyoto targets. SOx and NOx show decreasing patterns, though the shape is affected by some outlier sectors with regard to joint emission-productivity dynamics. Services tend to present stronger delinking patterns across emissions than manufacturing. Trade expansion validates the pollution haven in some cases, but also shows negative signs when only EU15 trade is considered. This may due to technology spillovers and a positive ‘race to the top’ rather than the bottom among EU15 trade partners. General R&D expenditure shows weak correlation with emissions efficiency. SUR estimators (Seemingly Unrelated Regressions) suggest that, as regards manufacturing, the slope varies across sectors. Further research should be directed towards deeper investigation of trade relationship at the sector level and increased research into and efforts to produce specific sectoral data on ‘environmental innovations’.
This paper investigates the link between environment related innovation and job creation at firm ... more This paper investigates the link between environment related innovation and job creation at firm level. Employing Italian data on 4,507 manufacturing firms, matched with patent records for the period 2001-2008, we test whether "green" innovation, measured using the number of environment related patents, has a positive effect on long run employment growth that is specific with respect to non environmental innovation. Results show a strong positive impact of "green" innovation on long run job creation, substantially bigger than the effect of other innovations. Our findings are robust to a number of additional tests including controls for cost differential between generic and "green" innovation and endogeneity.
♣ Lavoro realizzato e finanziato nell‟ambito del progetto ADRIABIO “Stato, ricadute economiche e ... more ♣ Lavoro realizzato e finanziato nell‟ambito del progetto ADRIABIO “Stato, ricadute economiche e profili giuridici della biodiversità marina costiera del nord Adriatico: creazione di un database di riferimento nell‟ambito del network globale „Census of Marine Life‟ ”, Workpackage 3 “Valutazione ambientale, economica e giuridica” realizzato dal Dipartimento di Biologia Evoluzionistica Sperimentale dell‟Università di Bologna. ... Un ringraziamento particolare ad Anna Montini (Università di Bologna) per la disponibilità e gli utili consigli nella stesura del lavoro.
The aim of this paper is to investigate the effect of environmental regulatory stringency on inno... more The aim of this paper is to investigate the effect of environmental regulatory stringency on innovation and productivity using a panel of 8 European countries for 13 manufacturing sectors over the years 2001–2007. This research topic falls under the heading of the Porter hypothesis (PH) of which different versions have been tested. We consider both the strong and the weak versions of the PH, while also adding some peculiar features to the analysis. Firstly, we assess the role played by environmental taxes, that is an instrument rarely tested as a factor which can support the PH. Secondly, we analyse not only the effect of environmental taxes within a given sector (within-sector), but also the role played by environmental taxes in upstream and downstream sectors in terms of input–output relationships. Thirdly, we test these relationships also ‘indirectly’ by verifying whether innovation is one of the channels through which higher sectoral productivity can be achieved by imposing tighter environmental regulations. Our main findings suggest that downstream stringency is the most relevant driver of innovation and productivity while within-sector regulations only affect productivity but not innovation. Moreover, the effect of regulations on productivity is mostly direct, while the part of the effect mediated by induced innovations, as measured by patents, is relevant only for what concerns downstream regulations.
Eco-innovation is an explicit aim of major EU policy strategies. Many environmental policies de f... more Eco-innovation is an explicit aim of major EU policy strategies. Many environmental policies de facto require firms to eco-innovate to comply with policy requirements, while the overlap between policy-driven and market-driven eco-innovation strategies is increasingly important for many firms. Barriers to eco-innovation can then emerge as a critical factor in either preventing or stimulating EU strategies, policy implementation, and the green strategies of firms. In this paper we focus on EU-27 SMEs. We single out and explore different firm profiles, considering eco-innovation barriers and engagement. Our analysis is based on a particularly suitable dataset: the Eurobarometer survey on "Attitudes of European entrepreneurs towards ecoinnovation". We identify six clusters of SMEs. These clusters include firms facing either 'Revealed barriers' or 'Deterring barriers', 'Cost deterred' firms, 'Market deterred' firms, 'Non eco-innovators', and 'Green champions'. The clusters display substantial differences in terms of eco-innovation adoption. We show that our taxonomy has little overlap with sector classifications. This diversity should be taken into account for successful environmental and innovation policies.
The catchword 'green skills' has been common parlance in policy circles for a while, yet there is... more The catchword 'green skills' has been common parlance in policy circles for a while, yet there is little systematic empirical research to guide public intervention for meeting the demand for skills that will be needed to operate and develop green technology. The present paper proposes a data-driven methodology to identify green skills and to gauge the ways in which the demand for these competences responds to environmental regulation. Accordingly, we find that green skills are high-level analytical and technical know-how related to the design, production, management and monitoring of technology. The empirical analysis reveals that environmental regulation triggers technological and organizational changes that increase the demand for hard technical, engineering and scientific skills. Our analysis suggests also that this is not just a compositional change in skill demand due to job losses in sectors highly exposed to trade and regulation.
The consideration of both the direct and the indirect effects of global production and trade is t... more The consideration of both the direct and the indirect effects of global production and trade is the first step in order to assess the sustainability of resource exploitation, in particular water usage. This paper applies the Global Multi-Regional Input-Output model to quantify the interdependencies of different sectors and to determine the overall water consumption of each country. This procedure allows the measurement of Virtual Water Trade, that is the volume of water embedded in traded goods. This paper introduces further extensions based on network analysis to overcome the limitations of I-O models. To the best of our knowledge, this is the first attempt to build a bridge between two different, but related, methodologies.
Eco innovations (EI) that address climate change mitigation require pressures and knowledge from ... more Eco innovations (EI) that address climate change mitigation require pressures and knowledge from outside the firm's and sector's boundaries, due to the radicalness and variety of techno-organisational knowledge the economy needs to curb emissions by 90 % in the long run and 40 % in the medium run, at least according to EU targets. The role of policy as a tool that potentially tackles two externalities-innovation and environmental market failures-has been studied over the past decade. Sector integration, which is increasingly relevant for understanding the economic, environmental and innovation performances of countries, might additionally influence innovations, and it is relatively overlooked. We integrate these two perspectives to provide evidence on the adoption of EI in EU sectors over 2006-2008. Using past CO 2 emission intensity as a proxy of policy stringency we find that emission intensive sectors are more likely to adopt CO 2 -related ecoinnovations. The aforementioned results are valid for both the economy as a whole and for industrial sectors specifically. We additionally show that inter sector integration and knowledge sources matter: we do observe that sectors with more emission intensive upstream 'partners' eco-innovate more to reduce their CO 2 footprints. The positive and significant effect of upstream emission intensity (supplier's emission intensity) on EI is actually stronger than the effect of 'direct' CO 2 emission intensity (policy effect).
INGENIO [CSIC-UPV] Ciudad Politécnica de la Innovación | Edif 8E 4º | Camino de Vera s/n | 46022 ... more INGENIO [CSIC-UPV] Ciudad Politécnica de la Innovación | Edif 8E 4º | Camino de Vera s/n | 46022 Valencia tel +34 963 877 048 | fax +34 963 877 991 | [email protected]
This paper investigates the link between environment related innovation and job creation at firm ... more This paper investigates the link between environment related innovation and job creation at firm level. Employing Italian data on 4,507 manufacturing firms, matched with patent records for the period 2001-2008, we test whether "green" innovation, measured using the number of environment related patents, has a positive effect on long run employment growth that is specific with respect to non environmental innovation. Results show a strong positive impact of "green" innovation on long run job creation, substantially bigger than the effect of other innovations. Our findings are robust to a number of additional tests including controls for cost differential between generic and "green" innovation and endogeneity.
This paper discusses the results for Italy of a CDM model (Crepon et al., 1998) further extended ... more This paper discusses the results for Italy of a CDM model (Crepon et al., 1998) further extended with the objective of evaluating drivers and productivity effects of environmental innovations. The particular nature of environmental innovations, especially as regards the need of government intervention to create market opportunities, is likely to affect the way through which they are pursued (innovation equation within the CDM model) and their effect on productivity (productivity equation).
The contribution of the paper is manifold. First, the drivers of environmental innovations (measured with environmental patents) are investigated by using mainly administrative data instead of survey data. Second, I investigate the extent to which firms with big polluting plants tend to bias their innovation strategies towards environmental technologies. Third, the return of environmental innovations is compared to the one of other innovations to indirectly assess the presence of a crowding out effect of environmental innovations at the expenses of other (possibly more profitable) innovations.
Results, based on administrative data (AIDA by Bureau van Dijk and patent data from PATSTAT) of Italian manufacturing firms, show that innovation efforts of polluting firms is significantly biased towards environmental innovations and that environmental innovations tend to crowd out other more profitable (at least in the short run) innovations.
We integrate input output and NAMEA tables for Spain and Italy in 1995, 2000 and 2005, in order t... more We integrate input output and NAMEA tables for Spain and Italy in 1995, 2000 and 2005, in order to address the hot policy issue of sustainable consumption and production. A comparison of production and consumption perspectives may have relevant policy implications. We deal with the domestic technology assumption and primarily the aggregation bias that may result when calculating indirect emission using different sector aggregations in the analyses (e.g. 16, 30, 50). Extended Input Output Analysis provides analyses of the emissions embodied in domestic consumption and domestic production by considering the structure of intermediate inputs and environmental efficiency in each production sector. Our empirical findings show that different sectoral aggregation significantly biases the amount of emissions for the consumption perspective, though differently in the two countries. Italy surprisingly show consumption/production ratios around or lower than one, but in line with some major work at EU level. Our results thus suggest that special attention must be paid when interpreting the EE-IOA of country estimated amounts of embodied emissions, both in domestic final demand and those directly associated with the production sectors when the sectoral aggregation level has a low definition as considered in some recent similar studies.
This paper provides new empirical evidence on delinking in income–environment dynamic relationshi... more This paper provides new empirical evidence on delinking in income–environment dynamic relationships for CO2 and air pollutants at the sector level. A panel dataset based on the Italian NAMEA (National Accounting Matrix including Environmental Accounts) over 1990–2007 is analyzed, focusing on both emissions efficiency (EKC model) and total emissions (IPAT model). Results show that, looking at sector evidence, both decoupling and also eventually re-coupling trends could emerge along the path of economic development. The overall performance on greenhouse gases, here CO2, is not compliant with Kyoto targets. SOx and NOx show decreasing patterns, though the shape is affected by some outlier sectors with regard to joint emission-productivity dynamics. Services tend to present stronger delinking patterns across emissions than manufacturing. Trade expansion validates the pollution haven in some cases, but also shows negative signs when only EU15 trade is considered. This may due to technology spillovers and a positive ‘race to the top’ rather than the bottom among EU15 trade partners. General R&D expenditure shows weak correlation with emissions efficiency. SUR estimators (Seemingly Unrelated Regressions) suggest that, as regards manufacturing, the slope varies across sectors. Further research should be directed towards deeper investigation of trade relationship at the sector level and increased research into and efforts to produce specific sectoral data on ‘environmental innovations’.
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Papers by Giovanni Marin
The contribution of the paper is manifold. First, the drivers of environmental innovations (measured with environmental patents) are investigated by using mainly administrative data instead of survey data. Second, I investigate the extent to which firms with big polluting plants tend to bias their innovation strategies towards environmental technologies. Third, the return of environmental innovations is compared to the one of other innovations to indirectly assess the presence of a crowding out effect of environmental innovations at the expenses of other (possibly more profitable) innovations.
Results, based on administrative data (AIDA by Bureau van Dijk and patent data from PATSTAT) of Italian manufacturing firms, show that innovation efforts of polluting firms is significantly biased towards environmental innovations and that environmental innovations tend to crowd out other more profitable (at least in the short run) innovations.
The contribution of the paper is manifold. First, the drivers of environmental innovations (measured with environmental patents) are investigated by using mainly administrative data instead of survey data. Second, I investigate the extent to which firms with big polluting plants tend to bias their innovation strategies towards environmental technologies. Third, the return of environmental innovations is compared to the one of other innovations to indirectly assess the presence of a crowding out effect of environmental innovations at the expenses of other (possibly more profitable) innovations.
Results, based on administrative data (AIDA by Bureau van Dijk and patent data from PATSTAT) of Italian manufacturing firms, show that innovation efforts of polluting firms is significantly biased towards environmental innovations and that environmental innovations tend to crowd out other more profitable (at least in the short run) innovations.