Does eco-innovation stimulate employment? The case of Spanish manufacturing firms

Sara Fernández*, Celia Torrecillas, Guillermo Arenas Diaz

*Corresponding author

Research output: Contribution to journalArticle

Abstract

The demand for eco-products due to the exigency of friendly and environmental production could affect the employment of the firms. This paper tests whether product and process eco-innovations boost employment in Spain differentiating by the environmental goals (material and energy efficiency and environment responsiveness), by the level of qualification of the workers, and by the dirtiness of the industries. We apply a Green Harrison model, using the Technological Innovation Panel (PITEC) for Spain from 2008 to 2016. Results show a positive relationship between all types of product eco-innovations and employment, while the influence of process eco-innovations on employment depends on the environmental goals, the level of skills, and the industry. Specifically, distinguishing by industry there is a labour-saving effect in clean industries and a labour-friendly effect for low-skilled employment in dirty industries.
Original languageEnglish
Pages (from-to)571-585
Number of pages15
JournalStructural Change and Economic Dynamics
Volume69
DOIs
Publication statusPublished - 2024

Keywords

  • Dirty and clean industries
  • Eco-innovations
  • Employment
  • Harrison model
  • High- and low-skilled

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