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The purpose of the paper is to investigate the attitude to risk related to low-probability, high-impact events. To do this, we compare the willingness to pay (WTP) to reduce mortality risks and the WTP for life insurance against earthquakes. We explore whether risk perception affects these measures, and exploit WTP to reduce risk of fatality to calculate the Value of a Statistical Life (VSL) related to seismic events. We rely on data from a survey administered to a representative sample of the Italian population. Our results highlight that the WTP to reduce mortality risk is lower than the WTP for life insurance, and that the correlations between risk perception and these two measures differ. The findings suggest that individuals’ preferences are directed toward risk management strategies in which the mortality risk is transferred to the capital market, rather than risk mitigation strategies involving the individual in sharing the costs and benefits with all of society.

Recycling and the recovery of waste are crucial waste management strategies. In light of the new European Union (EU) circular economy approach, these strategies remain core pillars of a competitive and sustainable waste value chain. Local governments have an important role in controlling and checking the implementation of waste management policies. We study the spatial determinants of waste recovery using a dataset of 102 Italian provinces from 2001 to 2014. To induce a possible source of exogenous variation, we exploit the political cycle of the provinces to isolate the impact of waste recovery in neighbouring provinces on its own province’s waste recovery. We find that after the transposition of the 2008 EU Waste Framework Directive, provinces mimic their own neighbours in the separate collection of waste aimed at recycling and recovery. This effect is more pronounced during pre-electoral years than non-pre-electoral ones, and fully guided by provinces where the president can run for re-election.

The degree of social acceptance of biogas as a renewable green energy source is still somewhat disregarded. Although many initiatives have focused on the construction of new biogas plants around the world, local protests on the construction of new plants often arise. This study aims to analyse the determinants of citizens' perceptions regarding the construction of new biomass plants in their neighbouring areas. In particular, the focus is on prior knowledge of the production process of biogas as well as on other individual characteristics. The investigation is based on two repeated surveys conducted among the population living in two Italian areas where the construction of new large biogas plants were planned (the provinces of Oristano and Andria). The first survey analyses the main variables correlated with the degree of biogas acceptability particularly the biogas knowledge. The second survey (differentiated in two waves) focuses on the role of participatory processes and information campaigns undertaken by policy makers and environmental associations to increase the social acceptance of communities regarding the construction of new biogas plants.

International audience; The European Union faced several crises in the last twenty years that destabilized its macroeconomic equilibrium and development capacity. Standard economic methodologies were capable of neither predicting nor completely solving these crises through appropriate investments. To understand the overall development performance, the well-known Human Development Index (HDI) is the most widely deployed conceptual framework. In this article, we look at the components of welfare dynamics in the EU by examining socioeconomic performance. Through a 'beyond gross domestic product (GDP)' * The research is conceptually related to the activities of the European Topic Centre on Waste, materials and the Green Economy (ETC WMGE, European Environment Agency). It is also within the research activities of the 2018-2022 UNIFE project on Circular economy, Innovations and SMEs funded by MIUR Italian ministry under the 'Departments of excellence' programme, and the activities of the related CERCIS research centre on Circular Economy, Innovation and SMEs.

The European Union has recently prioritized waste policies by embedding them in the new Horizon Europe work programme. Here, circular economy (CE) and digitalization are matching together in order to support all the industrial sectors in increasing their sustainability level. One of the main impacts expected from the EU is a better exploitation of wasted resources. However, waste streams are very different in terms of volumes, embedded materials and management policies. Considering only those waste streams with highest volumes, this study focuses on End-of-Life Vehicle (ELV), Municipal Solid Waste (MSW) and Waste from Electrical and Electronic Equipment (WEEE). Starting from some policy recommendations and analyses identified through a literature review and the support of the experts, a survey has been conducted to identify the most critical items for each waste stream. Results of the survey show that, on the one hand, end of waste strategies has the highest importance for WEEE and ELV categories. On the other hand, social change has the highest importance for MSW. Consequently, end of waste strategies and social change should be considered as enablers of reuse and recycling practices in their reference contexts. In order to counteract the significant socio-economic issues already caused by delays in taking clear decisions about climate change mitigation strategies, policymakers should focus on these policy implications urgently if even more imminent environmental catastrophes are to be avoided.

Assessing the economic consequences of sustainable production choices aimed at reducing negative environmental externalities is crucial for policy making, in light of the increasing interest and awareness experienced in recent EU policy packages. This assessment is one of the goals of the current work, which tries to provide new empirical evidence on the economic returns of circular economy practices, drawing on previous literature on the underlying determinants of greener production choices, which are stated to differ from standard technological innovations as they are subject to a knowledge and an environmental externality. Using an original dataset on approximately 3000 Italian manufacturing firms, we provide evidence on the relations among innovations related to the circular economy concept and economic outcome in the short run. The evidence shows that in the short run, it is difficult to obtain economic gains from circular economy related innovations when taken in isolation, especially for Small and medium-sized enterprises (SMEs), who may also experience negative returns.

Municipal solid waste prevention represents a topical point in circular economy policies within the European Union. It is therefore paramount to assess its state of decoupling from economic activity. There is weak evidence from empirical research that Italy managed to achieve this structural change locally. Decoupling is not arising homogenously in the waste generation-income relationship in Italy over the last two decades. The heterogeneity in economic performances and waste policies could be an explanation. However, it is possible to find common patterns between decoupler against non-decoupler provinces. This paper involves panel data of 103 provinces during eighteen years (2001-2018) of Italian Provinces (NUTS3) to assess the drivers of structural changes in the income-waste relation. The innovation consists of the use of a threshold model to assess the minimal requirements of socio-economic performances to decouple economic activity to non-separated waste. The threshold point differs from the tipping point as it is always observable in the panel. Previous studies mostly estimated the latter involving panel data analysis. This often resulted in fallacious interpretation, especially due to spurious regressions. The observability is a relevant criterion, as several provinces have achieved the decoupling state. Results indicate that economic activity and tourist are relevant threshold variables in waste prevention. Both are sources of local financing; thus, it is probable that circular practices are dependent on the volume of potential expenditure rather than structural characteristics such as population density.

The objective of this chapter is to evaluate the contribution of structural change to production and consumption patterns with respect to sustainability analysis, with specific reference to sustainable production and consumption issues. In the face of delocalization processes and value chain restructuring, the analysis of sustainable development should instead provide both consumption and production dimensions. In the empirical analysis, the authors consider four measures of emission intensity: consumption-based emissions, consumption-based emissions due to structural change, production-based emissions, and production-based emissions due to structural change. The empirical results suggest a moderate contribution of structural change to decreases in overall emissions.

Recycling and the recovery of waste are crucial waste management strategies. In light of the new EU circular economy approach, these strategies remain core pillars of a competitive and sustainable waste value chain. Local governments have an important role in controlling and checking the implementation of waste management policies. We study the spatial determinants of waste recovery by using a dataset of 102 Italian provinces from the years 2001-2014. We exploit the political cycle of the provinces to isolate the effects of waste recovery in one province on neighboring provinces. We find that provinces mimic their own neighbors’ in the separate collection of waste aimed at recycling and recovery, with this effect being fully guided by provinces where the president can run for re-election (consistent with the yardstick competition hypothesis) but only when waste management policies become politically salient, that is, after the transposition of the 2008 EU Waste Framework Directive.

Environmental policies are a significant driver of change towards the achievement of sustainability. Policies impact on the environment through direct and indirect effects. Indirect effects pertain to the effect of innovation and invention mechanisms. The paper analyses those direct and indirect effects by focusing on different measures of environmental productivity. Econometric analysis on a long macroeconomic panel dataset is used to convey original insights, and as a platform for policy assessments. Results show that environmental policies adopted by countries may boost environmental productivity performances both directly and indirectly, through innovation, across various environmental dimensions. The increasing stringency of environmental policy, which has been observed over the last decades, is a crucial driver of change for climate actions, waste and resource efficiency, touching upon various SDGs related to responsible consumption and production, economic growth, industry and innovation infrastructures and climate action.

Renewable electricity is a pillar of the sustainability transition being pursued through climate and energy policy strategies, and the European Green Deal represents a potential investment plan for this new phase of development. Economic growth can be influenced by the expansion of renewable electricity consumption, but the nature of their relationship is ambiguous and depends on various economic and policy factors. This paper investigates the long-run relationship between renewable electricity consumption and economic growth in selected countries over the period 1971–2015 using econometric panel data techniques that specifically address cross-country heterogeneity and cross-sectional dependence. Our findings suggest that, on average, there is a significant positive long-term relationship between renewable electricity consumption and economic growth, although Granger causality is not detected. Regarding causality, we do find per capita economic growth to be a causal factor for total electricity consumption and fossil-fuel based electricity consumption.

This study developed a new integrated assessment method for sandy beaches, using three recreational Italian beaches as case study, with the purpose of obtaining their economic value. The method was based on a geomorphological assessment of the beaches and a carrying capacity evaluation; an economic analysis through the elicitation of the willingness to pay (WTP); a social assessment of beachgoers’ attitude and opinion. For the selected beaches, which differed for typology, location, shape, level of urbanization and tourism, we identified the available surfaces for recreational uses trough the observation of satellite images. WTP results indicate that respondents would be willing to pay a contribution from 9 to 15€ per season. WTP is principally positive correlated with some variables like beach frequentation, residence in the localities, available services on the beach. The value of the selected beaches was calculated multiplying the sustainable carrying capacity of each site with their related maximum WTP. It was found that the values of the beaches varied from more than 50M€/season at a popular urban beach to 1M€/season at a remote natural beach. The comparison of beach valuation and investments made by managers of the beaches show a gap. Therefore, the huge non-market value of these beaches might need decision-makers to guarantee continuous beach restoration measures.

The special issue addresses the role of sustainability-oriented innovation and inventions as a relevant factor in the transition of our economies towards a greener, low carbon, and circular economy. It focuses on the EU, an area which has set stringent waste and climate change policies over the past decades. Though sustainable innovation and green knowledge issues have been developed over the past two decades since seminal papers appeared, some compelling research avenues still exist at the frontier. This issue attempts to close some knowledge gaps through different channels that broaden the perspective on eco-innovations towards a green knowledge type of setting, where technology, human capital, social capital are all relevant.

CNRS 3, HCERES B; International audience; Information communication technology (ICT) and environmental innovation (EI) are relevant waves of the ongoing technological revolution. We study the complementarity in innovation adoption to test the research hypothesis that the higher the diffusion and intensity of usage of ICT and EI, the higher a firm's productivity performance might be. However, it is not certain that the use of different innovations stemming from different innovation paths generates higher productivity. To test our hypothesis, we use original survey data concerning manufacturing firms in Northeast Italy including detailed information on both ICT and EI. Empirical evidence shows that there are still wide margins to improve the integration between EI and ICT in order to exploit their potential benefits on productivity. The awareness of specific synergies seems to mainly characterise the heavy polluting firms that are subject to more stringent environmental constraints, while some trade-offs tend to emerge for the remaining firms.

Cette etude se concentre sur les performances environnementales de l’industrie manufacturiere europeenne. Notre objectif est de tester l’existence de β -convergence, absolue et conditionnelle, ainsi que la convergence σ de la productivite environnementale (c’est-a-dire, pour chaque secteur, rapport entre valeur ajoutee et emissions de dioxyde de carbone) de 14 secteurs pour la periode 1995-2009 en utilisant la base de donnees WIOD. Les resultats soutiennent l’hypothese de la β -convergence et mettent en evidence d’autres facteurs tels que l’ouverture commerciale. Enfin, les resultats i ndiquent que la valeur ajoutee sectorielle peut affecter les performances environnementales, comme l’acceleration de convergence. Aucune preuve statistique de σ -convergence n’est trouvee.

FNEGE 3, HCERES A, ABS 2; International audience; Green jobs are a key objective of societal efforts to concretely support the long-term endeavour to reconcile sustainability and development. The present article analyses the extent to which the future growth of green jobs is influenced by microeconomic and sector/macro level factors. We conduct econometric analyses of European Small Medium Enterprise firms to assess the factors affecting the creation of green jobs in small and medium firms. We find that green product and service innovation is primarily relevant to the creation of green jobs. The interaction term between an environmental management system and product and service innovations has a positive and significant effect on the decision to hire for green jobs. We also conduct a deep analysis of the subset of firms that produce green products and services, which reveals some idiosyncratic features. This study lays the foundations for future research on the development of green skills, competences and jobs in firms as a reaction to market and policy levers.

This paper adopts an ex ante perspective to investigate the potential techno-organisational dynamics related to reducing greenhouse gas (GHG) emissions in the EU by 2030 and 2050. We provide a qualitative analysis based on interviews with representatives from the main manufacturing sectors in the EU. Path dependency and enhanced carbon pricing may support the ‘incremental path’. More radical changes are achievable through strong techno-organisational reorganisation and new policy support. It follows that technological innovation is sufficiently effective only if coupled with organisational innovation. Earmarking ‘environmental revenues’ to support sector R&D is a way to enhance the governance of the innovation-policy realm and create opportunities for radical innovation.

The main purpose of the study is to evaluate the economic value related to beach preservation by elicitation of the willingness to pay (WTP). This analysis is based on the results of about 5000 interviews conducted on 41 different Italian beaches. A Contingent Valuation (CV) – a closed-ended dichotomous choice model with a follow-up question - approach is used to elicit WTP. Results of the whole sample indicate that respondents would be willing to pay a contribution of almost 15 €/yr per user in order to preserve the beach. WTP is also calculated for natural, semi-urban and urban beach typologies. The analysis shows that beach typologies affect the WTP and similarities and significant differences of each typology are found according to respondents' sociometric indicators.

Available online 17 January 2018 Environmental non-compliance is affected by the decentralized shaping of environmental policy by local governments and enforcement actions by public bodies. Illegal waste disposal is examined in a relevant national case, by means of an original regionally disaggregated panel dataset for Italy, a country which witnesses heterogeneous environmental performances across regions and a decentralized policy system. Our empirical analysis produces two main insights of strong policy interest. First, commitment to a more stringent waste policy tends to increase illegal disposal of waste. Second, a nonlinear bell shaped relationship exists between the number of inspections and the quantity of illegal disposal. The key message is that deterrence might only result after a relatively high level of controls is implemented.

Eco-innovation plays a crucial role in reducing carbon emissions. Exploiting the consolidated IPAT/STIRPAT framework, this paper studies whether a relationship exists between green technological change (measured as stock of green patent) and both CO2 emissions and emission efficiency (CO2/VA). To investigate this relation, a rich panel covering 95 Italian provinces from 1990 to 2010 is exploited. The main regression results suggest that green technology has not yet played a significant role in promoting environmental protection, although it improved significantly environmental productivity. Notably, this result is not driven by regional differences, and the main evidence is consistent among different areas of the country.

Waste management and disposal are influenced by socio-economic, institutional and policy factors that possess idiosyncratic features in regional settings. The role of organized crime is a largely unexplored factor. Crime organizations such as the mafia are known to collude with local institutions to control waste markets. As a result, legal forms of waste disposal and socially preferable management options are often undermined primarily through an influence on policy enforcement. Given its high regional heterogeneity and local ‘waste crises’, Italy provides a compelling case for the study of crime's effects on local waste performance. Panel econometric analyses show that sorted collection of recyclable waste and legal forms of waste disposal are lower when the mafia's effect on the actions of local governments is more intense.

Innovation adoption and diffusion by firms are key pillars for the EU strategy on resource-efficiency and the development of a circular economy. This paper presents new EU evidence regarding the role of environmental policy and green demand drivers to sustain the adoption of resource efficiency-oriented eco-innovations. This paper originally implements new estimators to address the endogeneity of binary framed policy and demand covariates, which typically characterise firm level survey data. Our results suggest that when endogeneity is accounted for, environmental policy is the only factor always significant in driving the adoption of innovations that reduce the use of waste and material, while demand-side and market-factors do not always play a central role. The result is an important piece of new quantitative-based knowledge, which complements the currently large case study-based evidence on the setting of sound management and policy strategies for the circular economy.

We analyse the role of financial barriers in affecting the adoption of environmental innovations (EI) with a focus on manufacturing small and medium-sized enterprises in Europe. In taking stock of the consolidated literature on EI, we find that the role of financial barriers is substantially neglected, although crucial, even more relevant in the current phase of the economic cycle. Our empirical analysis confirms the existence of direct negative effects of financial barriers on environmental innovation investment decisions. It furthermore sheds more light on the determinants of financial barriers that shape firms’ cleaner production choices. Our findings have the following policy implications: properly designed policies can play a critical role, not only by stimulating EI through their determinants, but also by acting on the financial obstacles to eco-innovation. Policy relevance Environmental innovations (EI) are essential to achieve economic growth and environmental protection goals. Technological development is one of the key factors that can counterbalance the growth and population emission-augmenting effects. EI are a priority in major EU policy strategies and a prerequisite for the development of a ‘Resource efficient Europe’, one of the flagship initiatives of Europe 2020. The existence of financial barriers can constitute a serious deterrent for the eco-innovative capacity of firms, even more than for ‘traditional’ innovations, as EI are characterized by high technical risk, long payback period and uncertainty on the appropriability of private rents. This article analyses in depth whether barriers related to external financing affect EI investments and whether the stringency of financial constraints to investments in EI is affected by factors related to EI specificities. We show that when both direct and indirect effects on EI investments are considered, the role of the policy framework appears to be as particularly crucial in order to reverse the risk/return trade-off of eco-innovative investments. Targeting policy interventions to facilitate access to credit and to mitigate capital markets’ imperfections is essential to mitigate the apparent contradiction between EU industrial policies and climate abatement scenarios.