Post – i-remi

English

Eco-innovations introduce new products, processes or systemic changes that reduce pollution and help to achieve sustainability goals. Empirical research has demonstrated that tax regulation can incentivise eco-innovations in supply chains, promoting cleaner production and reducing pollution, as well as minimising fiscal costs associated with pollution. This study aims to analyse the relationship between environmental taxes and the development of eco-innovations by European companies. It was hypothesised that there is a positive and significant relationship between environmental tax pressure (ETP) and the level of business eco-innovation. Using a fixed effects methodology with panel data from 2013 to 2022, we examined the relationship between ETP and the level of business eco-innovatios. The present study employs the Eco-Innovation Index 2024 variables, obtained from the European Commission and the OECD’s environmental tax revenues. The results show that ETP is an effective incentive for business eco-innovation. It could be argued that as European companies implement eco-innovations, ETP decreases.