Effects of regulation-driven green innovations on short sea shipping's environmental and economic performance. (July 2020)

• Record Type: Journal Article
• Authors: Raza, Zeeshan
• Is Part Of: Transportation research. Volume 84(2020)
• Publication Date: 2020-07
• Subjects: Environmental regulations -- Green innovations -- Environmental performance -- Economic performance -- Short sea shipping; Transportation -- Research -- Periodicals; Transportation -- Environmental aspects -- Periodicals; 354.76
• DOI: 10.1016/j.trd.2020.102340
• Languages: English
• ISSNs: 1361-9209

Abstract

Highlights: The impact of regulatory pressure on green innovations is explored. The impact of green innovations on the firm performance is studied. Performance is measured in terms of environmental and economic performance. Regulatory pressure increases green innovations. Green innovations increase environmental and economic performance. Abstract: Despite its pivotal role in European trade, today's short sea shipping (SSS) industry faces the dual challenge of lessening its environmental footprint while improving its economic performance. To reduce the pollution caused by their operations, SSS companies are required to comply with increasingly stringent environmental regulations enacted by global and regional authorities such as the European Union and the International Maritime Organization. However, the companies tend to regard those regulations as imposing an additional burden of cost that compromises their capacity to enhance their economic performance. This paper examines the impact of external institutional driver namely regulatory pressure on the adoption of green innovations in SSS and in turn, the impact of those innovations on the environmental and economic performance of SSS companies. To investigate the hypothesised relationships of those constructs, a structural equation model was developed and tested with data from a survey conducted amongst 101 short sea shipping companies headquartered in Europe. As detailed in the paper, the analysis revealed that regulatory pressure has generated green innovations that have enhanced the environmental and economic performance of European SSS companies and, as a result, led to a win–win situation for all parties involved. The paper discusses what those findings imply for SSS firm managers and policymakers who seek to improve the environmental or economic performance of Europe's SSS industry.