-driven environmental innovation may impose additional costs to firms and lower their profits. On the other hand, eco-innovators could … profit from lower uncertainty in innovation due to regulatory standards and demand-generating effects of regulation. In this … paper we analyse (a) whether regulation-driven environmental innovation generate similar innovation success compared to …

are induced by regulations. However, innovation that increases a firm’s material or energy efficiency in terms of material … voluntary innovations, although the effect is significantly larger for regulation-driven innovation.We conclude that the Porter … hypothesis does not hold in general for its “strong” version but has to be qualified by the type of environmental innovation. Our …