Environmental innovation and environmental performance

Carmen E. Carrión-Flores; Robert Innes

doi:10.1016/j.jeem.2009.05.003

Environmental innovation and environmental performance

Carmen E. Carrión-Flores, Robert Innes

Research output: Contribution to journal › Article › peer-review

402 Scopus citations

Abstract

By estimating a simultaneous panel data model of environmental innovation and toxic air pollution, this paper identifies bi-directional causal links between the two. We study a panel of 127 manufacturing industries over the period 1989-2004. Pollutant emissions are an implicit measure of policy stringency and environmental patent counts are used to measure environmental innovation. After accounting for the joint endogeneity, we find that environmental innovation is an important driver of reductions in US toxic emissions. Conversely, we find that tightened pollution targets induce environmental innovation. However, our estimates indicate that the "environmental policy multiplier" - the proportionate contribution of induced innovation to long-run emission reduction - is small.

Original language	English (US)
Pages (from-to)	27-42
Number of pages	16
Journal	Journal of Environmental Economics and Management
Volume	59
Issue number	1
DOIs	https://doi.org/10.1016/j.jeem.2009.05.003
State	Published - Jan 2010
Externally published	Yes

Keywords

Dynamic and count panel data models
Environmental innovation
Pollution standards

ASJC Scopus subject areas

Economics and Econometrics
Management, Monitoring, Policy and Law

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10.1016/j.jeem.2009.05.003

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AB - By estimating a simultaneous panel data model of environmental innovation and toxic air pollution, this paper identifies bi-directional causal links between the two. We study a panel of 127 manufacturing industries over the period 1989-2004. Pollutant emissions are an implicit measure of policy stringency and environmental patent counts are used to measure environmental innovation. After accounting for the joint endogeneity, we find that environmental innovation is an important driver of reductions in US toxic emissions. Conversely, we find that tightened pollution targets induce environmental innovation. However, our estimates indicate that the "environmental policy multiplier" - the proportionate contribution of induced innovation to long-run emission reduction - is small.

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KW - Pollution standards

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Environmental innovation and environmental performance

Abstract

Keywords

ASJC Scopus subject areas

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