“Going green” for innovation? Energy efficient technologies and the innovative behaviour of manufacturing firms in Europe

This paper investigates the determinants for the introduction of energy efficient technologies (EETs) in European manufacturing firms. Increasing energy efficiency in industry has become one of the most important topics in economic and political debates during the past years. A more energy-efficient production is also expected to lead to lasting reductions in production costs and can contribute to an increase in the overall competitiveness of the firm. However, firm-level evidence – apart from case studies – on the specific conditions and obstacles of the introduction of these technologies is scarce. Our findings suggest that firms which invest in technical process innovations are also more likely to invest in energy efficiency. Moreover, there is a relationship between management tools such as environmental performance measurement systems or life cycle costing evaluation methods and investment in the aforementioned technologies. In addition, the sector and the country of the firm matters for investment decisions.