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Does Market Competition Affect Environmental Innovation? Some International Evidence
Department of Agribusiness and Supply Chain Management, Agricultural University of Athens, Thebes, Greece
Department of Agricultural Economics & Rural Development, Agricultural University of Athens, Athens, Greece
Department of Agribusiness and Supply Chain Management, Agricultural University of Athens, Thebes, Greece
- 1 Department of Agribusiness and Supply Chain Management, Agricultural University of Athens, Thebes, Greece
- 2 Department of Agricultural Economics & Rural Development, Agricultural University of Athens, Athens, Greece
- 3 Department of Agribusiness and Supply Chain Management, Agricultural University of Athens, Thebes, Greece
Theoretical Economics Letters·Volume 13 (2023)·Pages 1121–1130·Published 30 August 2023·DOI10.4236/tel.2023.135061
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Abstract
This study explores whether market competition affects firms ’ propensity for environmental innovation. The sample is an international panel of 25,833 firm-year observations from international, non-financial, listed firms, between 2002 and 2022. Using a binary logistic regression model and several measures of market competition, we document that firms in competitive m arkets are more likely to engage in environmental innovation. Our findings support the “escape the competition effect”, where companies, vis-à-vis market competition, strive to form competitive advantages.
KeywordsMarket CompetitionInnovationEnvironmental InnovationSchumpeterLogistic Regressions
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