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Carrots or Sticks: Which Policies Matter the Most in Sustainable Resource Management?

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  • Joana Costa

    (DEGEIT—Department of Economics, Management, Industrial Engineering and Tourism, University of Aveiro, Campus Universitário de Santiago, 3810-193 Aveiro, Portugal
    GOVCOPP—Research Unit on Governance, Competitiveness and Public Policies, Campus Universitário de Santiago, 3810-193 Aveiro, Portugal)

Abstract

Green growth has resulted from resource management, setting the speed for sustainable development. Eco-innovations are essential for the improvement of a firm’s performance with societal gains, demanding special attention from policy makers. This paper deals with the effect of policy actions on the enhancement of eco-innovation adoption. The Community Innovation Survey (CIS) 2012–2014 is used to estimate the impact of ‘carrots’ and ‘sticks’ on innovations with ecological benefits. In addition, the impact of a firm’s structural characteristics in ecological strategies is investigated. Regulations and taxes enhance eco-innovation, but grants are only relevant in the case of eco-innovations with external benefits. The firm dimension and non-technological innovation also increase the eco-innovation propensity. Embedding policy actions with environmental concerns will enhance social responsibility and promote resource preservation, providing waste as an economic value. The purpose of this paper is twofold. First, it aims to appraise the effectiveness of the different policy instruments applied in the adoption of innovation with ecological benefits with both internal and external benefits. Secondly, it aims to identify which firm characteristics determine these managerial strategies. Hopefully, light will be cast on the topic so that public and private decision-makers will be given recommendations for policy package design working towards smart and green growth.

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  • Joana Costa, 2021. "Carrots or Sticks: Which Policies Matter the Most in Sustainable Resource Management?," Resources, MDPI, vol. 10(2), pages 1-21, February.
    • Handle: RePEc:gam:jresou:v:10:y:2021:i:2:p:12-:d:492674
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    5. Tinghui Li & Jiehua Ma & Bin Mo, 2021. "Does Environmental Policy Affect Green Total Factor Productivity? Quasi-Natural Experiment Based on China’s Air Pollution Control and Prevention Action Plan," IJERPH, MDPI, vol. 18(15), pages 1-23, August.
    6. Senlin Hu & Gang Zeng & Xianzhong Cao & Huaxi Yuan & Bing Chen, 2021. "Does Technological Innovation Promote Green Development? A Case Study of the Yangtze River Economic Belt in China," IJERPH, MDPI, vol. 18(11), pages 1-18, June.
    7. Etherton, Berea A. & Choudhury, R.A. & Alcalá-Briseño, R.I. & Xing, Y. & Plex Sulá, A.I. & Carrillo, D. & Wasielewski, J. & Stelinski, L.L. & Grogan, K.A. & Ballen, F. & Blare, T. & Crane, J. & Garret, 2023. "Are avocados toast? A framework to analyze decision-making for emerging epidemics, applied to laurel wilt," Agricultural Systems, Elsevier, vol. 206(C).
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