Do eco-innovations harm productivity growth through crowding out? Results of an extended CDM model for Italy

This paper discusses the results for Italy of a CDM model (Crepon et al., 1998) further extended with the objective of evaluating drivers and productivity effects of environmental innovations. The particular nature of environmental innovations, especially as regards the need of government intervention to create market opportunities, is likely to affect the way through which they are pursued (innovation equation within the CDM model) and their effect on productivity (productivity equation).