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The Greener the Better: Job Creation and Environmentally- Friendly Technological Change

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  • Luisa Gagliardi
  • Giovanni Marin
  • Caterina Miriello

Abstract

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.

Suggested Citation

  • Luisa Gagliardi & Giovanni Marin & Caterina Miriello, 2014. "The Greener the Better: Job Creation and Environmentally- Friendly Technological Change," IEFE Working Papers 60, IEFE, Center for Research on Energy and Environmental Economics and Policy, Universita' Bocconi, Milano, Italy.
    • Handle: RePEc:bcu:iefewp:iefewp60
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    More about this item

    Keywords

    Technological Change; Eco-Innovation; Employment;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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