Climate variability, innovation and firm performance: evidence from the European agricultural sector. (14th September 2021)

• Record Type: Journal Article
• Authors: Auci, Sabrina; Barbieri, Nicolò; Coromaldi, Manuela; Michetti, Melania
• Is Part Of: European review of agricultural economics. Volume 48:Number 5(2021)
• Page Start: 1074
• Page End: 1108
• Publication Date: 2021-09-14
• Subjects: climate variability -- adaptation -- innovation -- patent -- panel endogenous switching regression model; Agriculture -- Economic aspects -- Periodicals; Agriculture -- Economic aspects -- Europe -- Periodicals; 338.109405
• DOI: 10.1093/erae/jbab039
• Languages: English
• ISSNs: 0165-1587

Abstract

Abstract: It is generally accepted that adaptation to climate variability requires a technological advancement strategy. However, the innovation process has received little explicit consideration in this framework. We employ a panel endogenous switching regression model to explore whether and to what extent climate variability affects firm performance through the ability to induce the development of adaptation innovations in key resource-based sectors in Europe during the period 2007–2017. Our findings confirm that the knowledge generation process at the heart of climate change adaptation technologies enhances firm performance, especially for firms in the aquaculture and fishing sub-sectors in northern European countries.