Popp, David; Hafner, Tamara; Johnstone, Nick - National Bureau of Economic Research (NBER) - 2007
-friendly innovation, we focus on a process innovation, rather than on end-of-the-pipe solutions to pollution. Moreover, while previous … studies emphasize the importance of regulation for inducing innovation, here we find substantial innovation occurring before … innovation. However, while some companies choose to adopt these technologies in response to consumer pressure, not all firms will …