Behavioural determinants of eco-innovation. A conceptual and empirical study

This study aims to contribute to the literature on the microeconomics of eco-innovation from a behavioural perspective. To this end, the Carnegie School ́s model of the ́initiation of inno-vation ́ was condensed into the empirically applicable model of the ?Composed Eco-Initiation Structure? (CEIS). The CEIS focuses upon the following three variables: general environmental goals, regulation-specific environmental goals and regulation-specific intentions to generate eco-innovations. As an empirical application, the willingness of German passenger car suppliers to undertake environmental product innovation as specified in article 4(1) of the European Union?s `End-of-life Vehicles Directive ́ was investigated by a quantitative survey. Survey responses were evaluated using structural equation modelling with a special emphasis on effect sizes, which allows the evaluation of complex interrelations. The results give ample evidence that internal behavioural aspects and external factors should be to be taken into account when analysing eco-innovation and designing environmental policies. The results indicate that environmental goals play a prominent role in eco-innovation. In addition, it appears that a mental accounting effect undergirds the relationship between innovations in general and eco-innovations in particular that should be investigated further and most likely requires specially designed policy instruments.