Publication Type

Journal Article

Version

publishedVersion

Publication Date

7-2020

Abstract

We investigate how different types of environmental policies and new regional environmental knowledge affect new venture creation in and financing of green (low carbon), brown (fossil fuel) and gray (unrelated to natural resources) technologies across 24 OECD countries and 293 regions over the period 2001-13. We find that new regional environmental knowledge positively impacts new venture creation in green technologies, and moderately in gray industries. Gray industries also benefit from enhanced start-up financing in regions where new environmental knowledge is created, confirming that environmental knowledge creation yields positive externalities beyond the green sector. We also find that a more stringent environmental policy regime negatively impacts the creation of new ventures across sectors, but most prominently, it discourages new fossil fuel ventures. However, once entrepreneurs decide to start a new business, stringent environmental policies have on aggregate a positive effect on new venture financing across sectors, particularly through feed-in-tariffs and emission standards.

Keywords

Environmental entrepreneurship, Environmental policy, Environmental finance, Knowledge spillover, Green venture capital, Fossil fuels

Discipline

Entrepreneurial and Small Business Operations | Environmental Sciences

Research Areas

Integrative Research Areas

Publication

Research Policy

Volume

49

Issue

6

First Page

1

Last Page

19

ISSN

0048-7333

Identifier

10.1016/j.respol.2020.103988

Publisher

Elsevier

Copyright Owner and License

Authors-CC-BY

Creative Commons License

Creative Commons Attribution 3.0 License
This work is licensed under a Creative Commons Attribution 3.0 License.

Additional URL

https://doi.org/10.1016/j.respol.2020.103988

Download

Share

COinS