Chatzistamoulou, N and Tyllianakis, E orcid.org/0000-0002-8604-4770 (2022) Green growth & sustainability transition through information. Are the greener better informed? Evidence from European SMEs. Journal of Environmental Management, 306. 114457. 114457-. ISSN 0301-4797
Abstract
The European Green Deal along with directives promoting Circular Economy support sustainability transition and foster green growth through developing appropriate funding. However, information on how to access such funding affects firms' decision to expand their business strategy. This paper investigates the effect of information about financing tools on the adoption of Circular Economy business activities by exploring whether the better-informed firms are ‘greener’ and what influences such decision through a switching endogenous regressor model to account for endogeneity and selectivity bias. Data on European SMEs is combined with country-specific characteristics and econometric results indicate that better informed firms are by 65 percentage points more likely to adopt an activity promoting Circular Economy, highlighting that awareness about funding tools is crucial for sustainability transition. Evidence advocates for mainstreaming information regarding funding sources to pave the way towards green growth. A rebound effect regarding the use of renewables is observed whilst evidence points towards the rejection of Porter Hypothesis. Policy makers should target in fostering a greener business environment for the firms that engage in Circular Economy practices through increased information on funding options. Findings are also pertinent to the ongoing discussion and policy agenda around acceleration of the transition to a greener European Economy.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2022 Elsevier Ltd. All rights reserved. This is an author produced version of an article, published in Journal of Environmental Management. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Green growth; Circular economy; European green deal; Awareness & information; Competitiveness; Switching with binary endogenous regressors |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Environment (Leeds) > School of Earth and Environment (Leeds) > Sustainability Research Institute (SRI) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 03 Feb 2022 15:34 |
Last Modified: | 20 Jan 2023 01:13 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.jenvman.2022.114457 |
Related URLs: | |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:183173 |
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