nep-eff New Economics Papers
on Efficiency and Productivity
Issue of 2026–03–23
sixteen papers chosen by
Angelo Zago, Universitàà degli Studi di Verona


  1. Emerging Successes in Accelerating Agricultural Productivity Growth in West Africa By Dabalen, Andrew L.; Fuglie, Keith; Goyal, Aparajita
  2. Sample Bias in Decompositions of Economic Dynamics By Jevan Cherniwchan; Nouri Najjar
  3. The Potential Impact of Procompetitive Regulatory Reforms on Productivity and Growth in Canada By Gilbert Cette; Jimmy Lopez; Giuseppe Nicoletti; Océane Vernerey
  4. A reexamination of the firm innovation process: sensitivity to sample and estimation methods By Océane Vernerey
  5. Technology spillovers, diffusion and rivalry in firm networks By Nuriye Melisa Bilgin; Ester Faia; Gianmarco Ottaviano
  6. Catalysing corporate energy efficiency investment: Financial and regulatory factors By Tueske, Annamaria; Lasheras Sancho, Marta
  7. Effects of brick kiln industry on agricultural productivity: A natural experiment in Bangladesh By Mahzab, Moogdho; Bakhtiar, M. Mehrab; Mattsson, Martin; Anowar, Md Sadat
  8. Financial development traps in European regions: Theory and evidence By Rodrigo Cuenca De Armas; Maria Teresa Balaguer-Coll; Emili Tortosa-Ausina
  9. STRATEGIES TO ADDRESS THE RISK OF THE MIDDLE-INCOME TRAP: HUMAN CAPITAL, TECHNOLOGY, AND PRODUCTIVITY – LESSONS LEARNED FROM KOREA, CHINA, VIETNAM, AND THAILAND By Danny Hermawan; Cicilia Anggadewi Harun; Citra Amanda; Elpiwin Adela; Marissa Novita; Ananda Surya Dahana Dewantara; Ilham Farizi Indrayadi; Fariz Ahmad Sultansyah; Matias Judatama
  10. Income Inequality, US MNEs and Green Technology Innovation: Evidence from OECD By João Bento; Miguel Matos Torres; Hicham Nachit
  11. AI in Science By Ajay K. Agrawal; John McHale; Alexander Oettl
  12. Framing AI in the audiovisual industries on LinkedIn By Anouck Butraud-Assathian; Cécile Méadel; Jaércio DA SILVA
  13. Uncertainty effects on European carbon prices and efficiency: A time-varying SVAR-SV Analysis By Wissal Zribi; Talel Boufateh; Duc K. Nguyen; Thomas Walther
  14. Structure and Performance of French Winegrowing Farms over the Period 2002-2021 By Yann Desjeux; K Hervé Dakpo; Laure Latruffe
  15. Do sufficiency consumption changes drive emissions down? A production network approach By Célia Escribe; Philippe Quirion
  16. The impact of “Green Regulation” on firms’ innovation By Juan S. Mora-Sanguinetti; Cristina Peñasco; Rok Spruk

  1. By: Dabalen, Andrew L.; Fuglie, Keith; Goyal, Aparajita
    Abstract: This paper examines agriculture growth performance in 20 countries in West and Central Africa over 2001–23. Most countries in the region continued to depend on land expansion to raise agricultural output. However, two countries in West Africa, Ghana and Senegal, stand apart. Over these two decades, Ghana and Senegal achieved rapid improvements in yields for a wide range of crops and agro-ecological zones. Agricultural labor productivity and total factor productivity also grew at rates comparable to those of the rest of the world. The paper investigates policy choices that may have contributed to accelerating and sustaining productivity growth. Compared to other countries in the region, Ghana and Senegal deepened rural infrastructure, invested significantly more in agricultural research, extension, and development, and expanded access to financial services. These factors helped achieve wider adoption of improved inputs and technologies and stimulate new economic activity along commodity value chains.
    Date: 2026–02–24
    URL: https://d.repec.org/n?u=RePEc:wbk:wbrwps:11323
  2. By: Jevan Cherniwchan; Nouri Najjar
    Abstract: Decompositions are a common method for quantifying within- and across-agent contributions to aggregate economic dynamics. We show that the standard practice of applying decompositions to sample data yields biased estimates of these contributions, and for common sample designs, these biases can be addressed by reformulating the decomposition as an estimation problem and applying standard statistical techniques. An application to India suggests sample bias meaningfully changes our understanding of how firm dynamics contribute to productivity growth. We also demonstrate our method enables the study of settings traditionally impeded by data limitations, such as productivity and firm dynamics in Sub-Saharan Africa.
    Keywords: Decomposition; Sample Bias; Economic Dynamics; Firm Dynamics; Productivity
    JEL: C18 D24 E24 O47
    Date: 2026–03
    URL: https://d.repec.org/n?u=RePEc:mcm:deptwp:2026-02
  3. By: Gilbert Cette (NEOMA - Neoma Business School); Jimmy Lopez (LEDi - Laboratoire d'Economie de Dijon [Dijon] - UBE - Université Bourgogne Europe); Giuseppe Nicoletti (LUISS - Libera Università Internazionale degli Studi Sociali Guido Carli [Roma]); Océane Vernerey (LEDi - Laboratoire d'Economie de Dijon [Dijon] - UBE - Université Bourgogne Europe)
    Abstract: This article explores how regulations that restrict competition in key Canadian nonmanufacturing sectors such as energy, transport, trade, and professional services have contributed to the country's long-standing productivity gap with the United States. Using international data on anticompetitive regulations and productivity from 15 countries and a large number of industries over the 1996-2021 period, the study finds that regulation in these upstream sectors, which supply essential inputs to the rest of the economy, plays a role in shaping overall productivity performance. Taking results causally, a thought experiment suggests that if Canada were to implement an ambitious reform effort aimed at adopting best international practices in regulating these four sectors, GDP per capita could rise in the long term by between 6.5 and 10 percent, depending on the range of reforms implemented. Gains would originate from procompetitive reforms in all sectors, with the largest ones coming from the professional services and retail distribution. Overall, the findings highlight the major economic benefits Canada could reap from implementing a deeper and swifter pro-competitive reform agenda than in the past.
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:hal:journl:hal-05446567
  4. By: Océane Vernerey (LISA - Laboratoire « Lieux, Identités, eSpaces, Activités » (UMR CNRS 6240 LISA) - CNRS - Centre National de la Recherche Scientifique - Università di Corsica Pasquale Paoli [Université de Corse Pascal Paoli], LEDi - Laboratoire d'Economie de Dijon [Dijon] - UBE - Université Bourgogne Europe)
    Abstract: In this article, we re-examine the innovation process through the CDM model. Compared to the existing literature, this study offers several contributions. First, it relies on an unusually large dataset of 509, 033 firms from nine European countries – Bulgaria, the Czech Republic, Estonia, Spain, Hungary, Lithuania, Portugal, Romania, and Slovakia – over the period 1998–2016. This extensive dataset allows us to explore cross-country heterogeneity, as well as potential temporal trends across multiple survey waves. Second, the paper provides a systematic and detailed review of the vast CDM literature, offering a structured synthesis of prior findings and highlighting the main areas where results diverge across studies. Third, methodologically, we compare three alternative estimation strategies, which enables us to evaluate the robustness of our findings and to identify potential sources of heterogeneity in estimated relationships. Across all specifications, we find that R&D investment has a positive effect on the share of new products in sales, which subsequently enhances firm performance. Promoting innovation can have a substantial impact on performance. However, the magnitudes of these effects vary depending on the country, the estimation method, and the treatment of potential biases. In some countries, innovation generates stronger positive spillover effects on firm performance, while others are more effective at transforming R&D into innovation but face challenges in converting this innovation into productivity gains. This implies, on the one hand, that public policies must be context-specific, and on the other hand, that the choice of estimation method and the treatment of potential biases can significantly affect the robustness and validity of the results.
    Keywords: Innovation process, CDM model, Methodological comparison
    Date: 2026
    URL: https://d.repec.org/n?u=RePEc:hal:journl:hal-05536446
  5. By: Nuriye Melisa Bilgin; Ester Faia; Gianmarco Ottaviano
    Abstract: We examine how upstream firms' technology adoption affects the performance and adoption decisions of downstream partners. Using business-to-business data with administrative records on advanced technology adoption, we find gains in productivity, performance, adoption probabilities of firms connected to the adopter, relatively to those that are not. Identification combines staggered event studies, balanced panels of pre-existing relationships, and recentering methods to address expected exposure within the network. Gains vary along firm size, centrality, technology quality, but do not systematically increase with input exposure, suggesting that knowledge spillovers may induce organizational adjustments. Adoption by competitors is associated with short-run negative effects.
    Keywords: technology diffusion, adoption and propagation, firm networks, firm productivity, imported inputs
    Date: 2026–03–11
    URL: https://d.repec.org/n?u=RePEc:cep:cepdps:dp2157
  6. By: Tueske, Annamaria; Lasheras Sancho, Marta
    Abstract: Over the past decades, a growing body of research has examined the structural and behavioral barriers that hinder firms from adopting cost-effective technologies to improve energy efficiency. In this paper, we draw on firm-level data from the EIB Investment Survey combined with energy efficiency regulatory indicators from the World Bank's RISE database to analyse two key strategic decisions: firms' likelihood of investing in energy efficiency, and the share of total investment allocated to such measures. Accounting for self-selection into energy efficiency investments, we find that financial constraints, particularly among SMEs, can limit firms' ability toundertake these long-term investments. Moreover, the share of investment allocated to energy efficiency is positively associated with the strength of a country's incentive-based energy efficiency regulatory framework.
    Keywords: Energy efficiency, firm investment, Europe, access to finance, regulation, green transition
    JEL: D22 L25 O33 Q40
    Date: 2026
    URL: https://d.repec.org/n?u=RePEc:zbw:eibwps:338073
  7. By: Mahzab, Moogdho; Bakhtiar, M. Mehrab; Mattsson, Martin; Anowar, Md Sadat
    Abstract: Agriculture remains central to Bangladesh’s economy and food security, yet it is increasingly threatened by the rapid expansion of informal brick manufacturing that extracts fertile topsoil from cropland and generates heavy local pollution. This paper provides national-scale causal evidence on how brick kiln expansion affects vegetation health and agricultural productivity by combining long-run satellite observations with geolocated kiln data. We construct a spatiotemporal panel of unions and municipalities using annual the Moderate Resolution Imaging Spectroradiometer normalized difference vegetation index (MODIS NDVI) from 2002–2024 and a high-resolution inventory of 9, 187 brick kilns detected through satellite imagery and machine learning. Using a continuous and staggered difference-in-differences design, we find no evidence of differential pre-trends, but we do find a clear and persistent deterioration in vegetation health following kiln establishment. The magnitude is economically meaningful: a marginal increase in kiln presence is associated with roughly a 1 percent annual decline in local vegetation productivity, with effects that persist and accumulate over time. These results are consistent with long-run soil degradation and chronic environmental exposure around kiln sites, and they imply substantial hidden costs of informal industrial growth in densely cultivated landscapes. The findings highlight the urgency of stronger enforcement of siting rules, of incentives for cleaner production technologies, and of land-use planning that protects high-productivity agricultural zones.
    Keywords: agricultural productivity; food security; plant health; remote sensing; drying kilns; Bangladesh; Asia; Southern Asia
    Date: 2025–12–31
    URL: https://d.repec.org/n?u=RePEc:fpr:gsspwp:180697
  8. By: Rodrigo Cuenca De Armas (Department of Economics, Universitat Jaume I, Castellón, Spain); Maria Teresa Balaguer-Coll (Department of Finance and Accounting, Universitat Jaume I, Castellón, Spain); Emili Tortosa-Ausina (IVIE, Valencia and IIDL and Department of Economics, Universitat Jaume I, Castellón, Spain)
    Abstract: This study explores the risk of financial development traps in European regions by analysing the performance of the financial sector in terms of productivity and its relationship with GDP per capita. Using data for 226 NUTS2 regions over the period 2000–2021, we construct two original indicators adapted from Diemer et al. (2022) to a sectoral framework, capturing respectively the cyclical and structural dimensions of decoupling between financial sector dynamics and regional economic performance. The analysis reveals that a non-negligible share of European regions show signs of entrapment, with considerable heterogeneity both between and within Eastern and Western Europe. Results also point to a reduction in the share of trapped regions between the crisis period (2008–2015) and the subsequent recovery phase (2016–2021), alongside a notable inversion in the relative exposure of Eastern and Western European regions. Our findings highlight the importance of assessing the functional orientation of the financial sector (rather than its mere size or depth) and suggest that institutional and sectoral factors play a critical role in shaping regional financial resilience beyond geographic location.
    Keywords: financial development, development traps, regional inequalities, productivity, employment, convergence
    JEL: R11 R58 O16 O18
    Date: 2026
    URL: https://d.repec.org/n?u=RePEc:jau:wpaper:2026/06
  9. By: Danny Hermawan (Bank Indonesia); Cicilia Anggadewi Harun (Bank Indonesia); Citra Amanda (Bank Indonesia); Elpiwin Adela (Bank Indonesia); Marissa Novita (Bank Indonesia); Ananda Surya Dahana Dewantara (Bank Indonesia); Ilham Farizi Indrayadi (Bank Indonesia); Fariz Ahmad Sultansyah (Bank Indonesia); Matias Judatama (Bank Indonesia)
    Abstract: This study investigates the structural challenges hindering Indonesia’s transition toward an innovation-driven, high-income economy, focusing on the interconnected roles of human capital, productivity, and technological capability. Using a mixed-method approach that combines 2SLS econometric modelling with extensive qualitative evidence from national focus group discussions across universities, government institutions, and industry stakeholders, the study finds that weaknesses in education quality, fragmented talent pipelines, and persistent gaps in university-industry collaboration significantly suppress Indonesia’s innovation output. The quantitative results demonstrate that human capital exerts a strong causal influence on productivity and income, yet its impact is constrained by weak R&D ecosystems and low patent generation capacity. Qualitative insights further reveal systemic misalignment across education policy, labour-market demand, and research commercialization, producing a “human capital paradox†in which increased educational attainment does not translate into proportional economic gains. These findings underscore the urgent need for an integrated national strategy that simultaneously strengthens foundational education, expands R&D capacity, and builds cohesive innovation ecosystems to accelerate Indonesia’s escape from the middle-income trap.
    Keywords: Emerging Economies, Human Capital, Innovation Ecosystem, MiddleIncome Trap, Productivity
    JEL: O15 O31 O47 O53 I2
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:idn:wpaper:wp062025
  10. By: João Bento; Miguel Matos Torres; Hicham Nachit
    Abstract: We are exploring the interplay between inequality and foreign direct investment (FDI) and green technology innovation, an area that remains underexplored in international business (IB) research. This study examines how green technology innovation moderates the relationship between FDI, proxied by the performance and operational outcomes of majority-owned U.S. foreign affiliates, and income inequality, measured by the Gini coefficient of equivalised disposable income from the Luxembourg Income Study (LIS) database. We employ OECD patent data on green innovations to construct a panel dataset of 28 high-income OECD countries from 2000 to 2020. Using fixed-effects panel regressions and quantile models with bootstrapped inference, the results indicate that FDI has a significant inequality-reducing effect, and green innovation moderates this relationship, reducing income inequality. Firm investment, profitability, efficiency, and innovation interact with green innovation to reduce inequality, highlighting the role of MNEs in fostering equitable outcomes. These findings contribute to a better understanding of IB activity by unpacking the interdependent dynamics between firm performance and national competitiveness, offering policy insights to promote FDI and green innovation and mitigate inequality.
    Date: 2026–03
    URL: https://d.repec.org/n?u=RePEc:lis:liswps:914
  11. By: Ajay K. Agrawal; John McHale; Alexander Oettl
    Abstract: We explore the impact of artificial intelligence (AI) on the knowledge production function. We characterize AI as a tool, not for full automation but rather for augmentation through enhanced search over combinatorial spaces. This leads to increased scientific productivity. We decompose knowledge production into a multi-stage process to shed light on the "jagged frontier" of AI in science, revealing differential returns to different tools across domains (e.g., data-rich biology vs. anomaly-sparse physics) and workflow stages (e.g., strong design aids like AlphaFold vs. subtler question generation tools). We treat human judgment as indispensable for tasks involving abductive inference, contextual nuance, and trade-offs, particularly in data-sparse environments. Drawing on a task-based model that distinguishes "ordinary" from AI-expert scientists, we describe how exogenous improvements in AI yield nonlinear productivity gains amplified by the share of scientists that are AI-experts to underscore the role of AI complements like skills training and organizational design.
    JEL: I23 O14 O31 O33 O41
    Date: 2026–03
    URL: https://d.repec.org/n?u=RePEc:nbr:nberwo:34953
  12. By: Anouck Butraud-Assathian (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PcEn - Chaire Pluralisme culturel et Ethique du numérique (Paris 1 Panthéon-Sorbonne), UP1 - Université Paris 1 Panthéon-Sorbonne); Cécile Méadel (CARISM - Centre d'Analyse et de Recherche Interdisciplinaires sur les Médias - Université Paris-Panthéon-Assas); Jaércio DA SILVA (CARISM - Centre d'Analyse et de Recherche Interdisciplinaires sur les Médias - Université Paris-Panthéon-Assas)
    Abstract: This chapter examines how professionals in the audiovisual sector frame generative artificial intelligence (AI) on LinkedIn. In a context where debates surrounding AI oscillate between enthusiasm and anxiety, this chapter examines how these tools are embedded in professional identities, work routines, and imaginaries within the cultural and creative industries. The analysis draws on a French-language corpus of 11, 526 posts, 9, 235 comments, and 8, 298 user biographies collected on LinkedIn between October 2022 and May 2025. Findings indicate that discourse on generative AI in the audiovisual field is predominantly positive, frequently framing these tools as drivers of innovation, creativity, and professional opportunity. Rather than focusing on specialised or sector-specific applications, users overwhelmingly reference widely accessible systems such as ChatGPT, which functions as a marker of technological literacy and adaptability. The results also highlight the emergence of hybrid professional identities and the rise of informal learning formats, positioning certain users as guides, educators, or facilitators in the adoption of AI. Meanwhile, AI is presented as a gateway to domains that traditionally required technical expertise, lowering entry barriers and circulating narratives of empowerment and productivity. Taken together, these findings suggest that LinkedIn operates less as a space for reporting concrete uses of generative AI in audiovisual production than as a stage for signalling expertise, demonstrating adaptability, and cultivating professional visibility. Generative AI thus becomes a resource for self-presentation and strategic positioning, contributing to the early dynamics of its appropriation in the audiovisual sector.
    Keywords: Digital, Audiovisual, CCIs, Cultural and Creative Industries, LinkedIn, AI, Artificial Intelligence, Audiovisuel, Numérique, Intelligence artificielle, ICC, Industries culturelles et créatives, IA
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:hal:cesptp:hal-05536578
  13. By: Wissal Zribi (ICL - Institut Catholique de Lille - UCL - Université catholique de Lille); Talel Boufateh; Duc K. Nguyen; Thomas Walther
    Keywords: Structure threshold VAR, SV, varying SVAR, time, carbon efficiency, Carbon prices, Uncertainty
    Date: 2025–09–30
    URL: https://d.repec.org/n?u=RePEc:hal:journl:hal-05493722
  14. By: Yann Desjeux (BSE - Bordeaux sciences économiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); K Hervé Dakpo (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Laure Latruffe (BSE - Bordeaux sciences économiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: The wine sector faces the dual challenge of profitability while meeting societal expectations for more sustainable production, in a changing climatic and economic environment. In this frame, the authors propose to provide here a picture of the French wine sector over the last two decades. Using data from the French Farm Accounting Data Network (Réseau d'information comptable agricole-RICA), we study the evolution of winegrowing farms in metropolitan France in terms of structure and performance over the period 2002-2021. Figures show that winegrowing farms have expanded and have experienced a decrease in yield and economic performance per hectare, but an increase in economic performance when calculated per annual working unit. Winegrowing farms have substantially reduced their crop protection costs but have increased the cost of contracting work.
    Abstract: Le secteur viticole doit composer avec le double défi de rentabilité tout en répondant aux attentes sociétales d'une production plus durable, dans un environnement climatique et économique changeant. Dans ce cadre, les auteurs proposent ici de fournir une image du secteur viticole français sur les deux dernières décennies. Grâce aux données du Réseau d'information comptable agricole (RICA), ils analysent l'évolution des exploitations viticoles en France métropolitaine en termes de structure et de performance sur la période 2002-2021. Les chiffres montrent que les exploitations viticoles se sont agrandies et ont subi une baisse de rendement et de performance économique ramenée à l'hectare, mais une augmentation de la performance économique par unité de travail annuel. Les exploitations viticoles ont fortement diminué leurs charges dédiées à la protection des cultures mais ont augmenté celles liées aux travaux par tiers.
    Keywords: FADN, Performance, Evolution, Winegrowing farms, France, RICA, Exploitations viticoles
    Date: 2025–10–01
    URL: https://d.repec.org/n?u=RePEc:hal:journl:hal-05532322
  15. By: Célia Escribe (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique - ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris, CMAP - Centre de Mathématiques Appliquées de l'Ecole polytechnique - Inria - Institut National de Recherche en Informatique et en Automatique - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique); Philippe Quirion (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique - ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris)
    Abstract: Energy efficiency and decarbonized energy sources are essential yet insufficient for meeting ambitious climate change mitigation goals. Sufficiency strategies, which involve reducing consumption and shifting to less environmentally impactful lifestyles, are increasingly recognized as crucial for decarbonization. However, their wider economic implications remain underexplored. This paper develops a static macroeconomic model with a detailed microeconomic production framework to analyze these implications. We derive comparative statics to unravel three primary propagation channels for consumption changes: direct demand effects, price effects, and substitution effects, based on the production network structure and elasticities of substitution. Using multi-regional input-output data, we assess the impacts of two sufficiency-driven consumption changes: adopting a vegetarian diet and reducing energy use. Our findings reveal significant rebound effects, up to 38% for domestic emissions and 60% for global emissions (accounting for carbon leakage), compared to estimates excluding behavioral aspects. Rebound effects from sufficiency strategies are smaller than those from energy efficiency improvements. Alternatively, conceptualizing sufficiency as increased leisure time preference results in reduced rebound effects and negative carbon leakage.
    Keywords: sufficiency, production networks, rebound effect
    Date: 2025–12–07
    URL: https://d.repec.org/n?u=RePEc:hal:journl:hal-05535445
  16. By: Juan S. Mora-Sanguinetti (BANQUE DE FRANCE AND BANCO DE ESPAÑA); Cristina Peñasco (BANQUE DE FRANCE AND UNIVERSITY OF CAMBRIDGE); Rok Spruk (UNIVERSITY OF LJUBLJANA)
    Abstract: This paper analyses the impact of “green regulations” - i.e. those aimed at mitigating the effects of climate change and environmental externalities - on innovation, using a novel regulatory database covering the period 008-2022 for Spain. The database identifies regulations at both the national and regional levels through textual analysis. Employing a panel data approach, we assess how different types of environmental regulations - particularly those related to renewable energy - affect firm-level innovation activities. Our findings indicate that national-level green regulations have a positive effect on innovation, whereas regional-level regulations show mixed or negligible impacts. Importantly, the interaction between national and regional regulations, measuring the simultaneous production of legal texts at both levels, can foster innovation but at a reduced pace with respect to the sole production of regulation at the national level. Given the results for regional-level regulation, our findings provide evidence in favour of the hypothesis that regulatory fragmentation due to unequal, overlapping, inconsistent or conflicting procedure across jurisdictions may diminish these benefits.
    Keywords: green regulation, innovation, Porter hypothesis, renewable energy, business
    JEL: K32 Q5 O44 O13
    Date: 2026–03
    URL: https://d.repec.org/n?u=RePEc:bde:wpaper:2611

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