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Climate variability, innovation and firm performance: evidence from the European agricultural sector
[The adoption and impact of soil and water conservation technology: an endogenous switching regression application]

Author

Listed:
  • Sabrina Auci
  • Nicolò Barbieri
  • Manuela Coromaldi
  • Melania Michetti

Abstract

It is generally accepted that adaptation to climate variability requires a technological advancement strategy. However, the innovation process has received little explicit consideration in this framework. We employ a panel endogenous switching regression model to explore whether and to what extent climate variability affects firm performance through the ability to induce the development of adaptation innovations in key resource-based sectors in Europe during the period 2007–2017. Our findings confirm that the knowledge generation process at the heart of climate change adaptation technologies enhances firm performance, especially for firms in the aquaculture and fishing sub-sectors in northern European countries.

Suggested Citation

  • Sabrina Auci & Nicolò Barbieri & Manuela Coromaldi & Melania Michetti, 2021. "Climate variability, innovation and firm performance: evidence from the European agricultural sector [The adoption and impact of soil and water conservation technology: an endogenous switching regr," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 48(5), pages 1074-1108.
    • Handle: RePEc:oup:erevae:v:48:y:2021:i:5:p:1074-1108.
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    File URL: http://hdl.handle.net/10.1093/erae/jbab039
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    Citations

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    Cited by:

    1. Ilan Noy & Eric Strobl, 2023. "Creatively Destructive Hurricanes: Do Disasters Spark Innovation?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(1), pages 1-17, January.
    2. Marie Lassalas & Sabine Duvaleix & Laure Latruffe, 2024. "The technical and economic effects of biodiversity standards on wheat production," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 51(2), pages 275-308.
    3. Yuxuan Xu & Jie Lyu & Ying Xue & Hongbin Liu, 2022. "Does the Agricultural Productive Service Embedded Affect Farmers’ Family Economic Welfare Enhancement? An Empirical Analysis in Black Soil Region in China," Agriculture, MDPI, vol. 12(11), pages 1-22, November.

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