IMPRESS: The Impact of Clean Production on Employment in Europe

• Research unit: EU RFP
• Project number: 99.0016

Key words (English)

Environmental innovations; employment effects; integrated technology; end-of-pipe technology; Switzerland

Alternative project number (English)

EU project number: SOE2-CT98-1106

Research programs (English)

EU-programme: 4. Frame Research Programme - 7.1 Targeted socio-economic research

Short description (English)

See abstract

Further information (English)

Full name of research-institution/enterprise:
Fachhochschule Solothurn Nordwestschweiz
Hochschule für Wirtschaft Olten

Partners and International Organizations (English)

Coordinator: Zentrum für Europäische Wirtschaftsforschung (ZEW), Mannheim (D)

Abstract (English)

While the impact of innovations on employment has been analysed empirically in several studies, only few studies have specifically analysed innovations which are environmentally beneficial. In this study, we have carried out case studies and analyse data from more than 1500 firms that have introduced environmental innovations recently in five European countries (Germany, United Kingdom, Italy, Netherlands, Switzerland). The data stem from identical telephone interviews carried out simultaneously in these countries. The interviews were especially designed for analysing the relationship between environmental innovation and employment on the firm-level. On the basis of an econometric model we find that different factors lead to positive and negative employment effects in the wake of environmental innovations.
Product and service innovations create more jobs in contrast to process innovations. Employment changes only occur in the wake of major innovations. While environmentally motivated innovations tend not to have employment effects, cost reductions envisaged by eco-innovations reduce employment. If the innovation is motivated by market share considerations, employment may increase as well decrease. We detect skill biased technological change of eco-innovations, because the share of highly qualified employees has a positive impact on employment increases, while it is insignificant for employment decreases. Employment is especially created in small firms. A positive correlation between sales expectations and employment is in broad conformity with the innovation literature.
Therefore environmental innovations have a small but positive effect on employment on the firm level. Thus, environmental support programmes do not counteract labour market policy. However, it should not be expected that the ecological modernisation of firms can provide substantial contributions to overcome mass unemployment. A further shift from end-of-pipe technologies to cleaner production, especially towards product and service innovations, would be beneficial for the environment and creates jobs. This synergy should be considered in political programmes whether they are borne by environmental, labour market or innovation policy. Some potential still exists for shifting subsidies from processes and end-of-pipe solutions to cleaner products and services.

References in databases (English)

Swiss Database: Euro-DB of the
State Secretariat for Education and Research
Hallwylstrasse 4
CH-3003 Berne, Switzerland
Tel. [phone]
Swiss Project-Number: 99.0016