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Employment Effects of Ecological Innovations: An Empirical Analysis

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  • Harabi, Najib

Abstract

Ecological innovations have increasingly been seen as a major response to environmental problems. An important question for both economic research and public policy is whether these innovations also increase employment or not (the question of a double dividend). The purpose of this paper is to investigate empirically the factors affecting direct employment changes due to eco-innovations at the firm level. This analysis has been conducted in the framework of estimating a labor demand function including eco-innovations, the firm’s output changes (changes in sales), its labor costs changes and a set of control variables (e.g. firm-specific variables, industry and country dummies). Using data from around 1600 firms in five different countries (Germany, Great Britain, Italy, Holland and Switzerland) we have obtained the following empirical results: firms investing in relatively important (from the firm’s perspective) labor cost saving product innovations that have not been subsidized by the state and pursuing a market driven business strategy that leads to increases of their sales in industries in which they have a market power also increase the likelihood of their achieving a positive long term direct employment effect. Firms that deviate - on average - from this ideal portrait do not have positive direct employment effects. (It should, however, be emphasized that neither the indirect microeconomic nor the overall macroeconomic effects of eco-innovations are the subject of this study.)

Suggested Citation

  • Harabi, Najib, 2000. "Employment Effects of Ecological Innovations: An Empirical Analysis," MPRA Paper 4395, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:4395
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    References listed on IDEAS

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    1. Blechinger, Doris & Kleinknecht, Alfred & Licht, Georg & Pfeiffer, Friedhelm, 1998. "The impact of innovation on employment in Europe: An analysis using CIS data," ZEW Dokumentationen 98-02, ZEW - Leibniz Centre for European Economic Research.
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    3. James D Adams, 1997. "The Structure of Firm R&D and the Factor Intensity of Production," Working Papers 97-15, Center for Economic Studies, U.S. Census Bureau.
    4. M Frybourg, 1988. "The Impact of Technological Change," Environment and Planning C, , vol. 6(2), pages 145-152, June.
    5. Michael Fritsch & Horst Brezinski (ed.), 1999. "Innovation and Technological Change in Eastern Europe," Books, Edward Elgar Publishing, number 1937.
    6. Pfeiffer, Friedhelm, 1997. "Human capital and innovation in East and West German manufacturing firms," ZEW Discussion Papers 97-08, ZEW - Leibniz Centre for European Economic Research.
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    Citations

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    Cited by:

    1. Ernst, Daniel & Stoetzer, Matthias-Wolfgang, 2012. "Beschäftigungseffekte von Innovationen auf Unternehmensebene: Ein Überblick theoretischer und empirischer Befunde," Wirtschaftswissenschaftliche Schriften 03/2012, Ernst-Abbe-Hochschule Jena – University of Applied Sciences, Department of Business Administration.
    2. Horbach, Jens & Rennings, Klaus, 2012. "Environmental innovation and employment dynamics in different technology fields: An analysis based on the German community innovation survey 2009," ZEW Discussion Papers 12-006, ZEW - Leibniz Centre for European Economic Research.
    3. Horbach Jens, 2010. "The Impact of Innovation Activities on Employment in the Environmental Sector – Empirical Results for Germany at the Firm Level," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(4), pages 403-419, August.
    4. Horbach, Jens, 2008. "The impact of innovation activities on employment in the environmental sector : empirical results for Germany at the firm level," IAB-Discussion Paper 200816, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Ángela Triguero & María C. Cuerva & Carlos Álvarez-Aledo, 2017. "Environmental Innovation and Employment: Drivers and Synergies," Sustainability, MDPI, vol. 9(11), pages 1-22, November.

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    More about this item

    Keywords

    Innovation; Ecological innovations; Employment; Labour Demand; European Countries; Germany; Great Britain; Italy; Holland; Switzerland;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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