Innovation for climate change adaptation and technical efficiency: an empirical analysis in the European agricultural sector

Sabrina Auci, Manuela Coromaldi, Nicolò Barbieri, Donatella Vignani

Research output: Contribution to journalArticlepeer-review

4 Citations (Scopus)

Abstract

This paper analyses the effect of innovation on firms' technical efficiency. Using climate-related patent data to proxy for innovation activity in different technological fields, the paper employs a stochastic frontier approach to estimate the impact of innovative efforts on agricultural firms' technical efficiency taking account of both unobservable heterogeneity and double heteroscedasticity in the inefficiency and idiosyncratic terms. Our findings confirm that innovation has a positive impact on firms' productivity (technical efficiency). While agricultural firms located in Germany and Sweden are more efficient compared to those in southern countries, all the European countries considered are distant from the maximum production frontier. This leaves room for governments to design economically sustainable agriculture policies, incentivize firms and foster technological innovation to achieve adaptations to present and future changes in climate.
Original languageEnglish
Pages (from-to)1-27
Number of pages27
JournalEconomia Politica
Publication statusPublished - 2020

All Science Journal Classification (ASJC) codes

  • Finance
  • Sociology and Political Science
  • Economics and Econometrics

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