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Jensen, F., Schäfer, D., Stephan, A. Financial constraints of firms with environmental innovation. Vierteljahrshefte zur Wirtschaftsforschung, 88(3), 43-65.
Jensen, Febi; Schäfer, Dorothea and Stephan, Andreas "Financial constraints of firms with environmental innovation" Vierteljahrshefte zur Wirtschaftsforschung 88.3, , 43-65.
Jensen, Febi/Schäfer, Dorothea/Stephan, Andreas: Financial constraints of firms with environmental innovation, in: Vierteljahrshefte zur Wirtschaftsforschung, vol. 88, iss. 3, 43-65, [online]


Financial constraints of firms with environmental innovation

Jensen, Febi | Schäfer, Dorothea | Stephan, Andreas

Vierteljahrshefte zur Wirtschaftsforschung, Vol. 88 (2019), Iss. 3 : pp. 43–65

7 Citations (CrossRef)

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Febi Jensen, University of Gothenburg, School of Business, Economics and Law, Sweden,

  • Febi Jensen, is a Ph.D. student in finance at the University of Gothenburg, School of Business, Economics and Law. She previously worked as a research assistant to Professor Andreas Stephan at Jönköping International Business School. Her main research interests include financial markets, green finance, and the intersection between corporate finance and economics of innovation. She holds a BSc in Economics and an MSc in Finance from Jönköping International Business School.
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Dorothea Schäfer, DIW Berlin and Jönköping International Business School, Jönköping University, Sweden,

  • Dorothea Schäfer Research Director Financial Markets at the German Institute for Economic Research (DIW Berlin) and Adjunct Professor of Jönköping International Business School, Jönköping University; she is Editor-in-Chief of the Eurasian Economic Review (EAER) and the Vierteljahrshefte zurWirtschaftsforschung (Quarterly Journal of Economic Research); Head of various research projects, inter alia, funded by the German Science Foundation (Deutsche Forschungsgemeinschaft DFG) and the EU Commission. She was Evaluator/reviewer of research programs/proposals for theGerman Science Foundation, EUCommission, the Federal Ministry of Education and Research (BMBF) and the LOEWE (Initiative for the Development of Scientific and Economic Excellence). She has published in The European Journal of Finance, Finance Research Letters, Small Business Economics, the Journal of Financial Stability, the International Journal of Money and Finance, German Economic Review, Economics of Transition, the Journal of Comparative Economics, the Journal of Institutional and Theoretical Economics and many other journals. She is a co-organizer of the DIW Lectures on Money and Finance. Schäfer gave expert testimonies for the Finance Committee of the Deutsche Bundestag, for the Committee on Social Affairs, Health and Sustainable Development, Parliamentary Assembly, The Council of Europe and for the Commission on the Financing of the Nuclear Phase-out. She was a member of the Fortschrittsforum and an advisor to the Sub-Committee “Policy for a Sustainable Political and Economic Governance” (Nachhaltige Ordnungspolitik) of the Enquete “Committee of Growth – Prosperity – Quality of Life” (Wachstum Wohlstand Lebensqualität).
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Andreas Stephan, Jönköping International Business School, Jönköping University, Sweden and DIW Berlin,

  • Andreas Stephan is professor of Economics and Finance at Jönköping International Business School, Jönköping University, Sweden. He graduated with a MSc in Industrial Engineering from Technical University in Berlin and earned a Ph.D. in Economics at Humboldt University Berlin.He previously held positions at the Social Science Research Center Berlin (WZB), at the German Institute for Economic Research (DIW) and at the European University Viadrina. He is a research affiliate with CESIS – Centre of Excellence for Science and Innovation Studies at the Royal Institute of Technology in Stockholm and guest professor at the Linnaeus university, Sweden. His research interests are in the areas of Green finance, SME and startup finance, banking, regulation, asset pricing and financial markets. His research has been published in Research Policy, Journal of Public Economics, Economic Inquiry, European Journal of Political Economy, Industrial and Corporate Change, Journal of Comparative Economics, Kyklos, Public Choice, among others.
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Summary: Using the Mannheim Innovation Panel, we explore whether Environmental Innovator Firms (EIFs) have higher financial needs and are more financially constrained than Non-Environmental Innovator firms (OIFs). We find that EIFs are more likely to have higher latent financial need in comparison to OIFs. This implies that EIFs have latent projects that they have not yet realized, but would implement if they had the financial means to do so. EIFs adopting environmental technologies have higher financial needs compared to firms that do not. One tentative conclusion from this finding is that public subsidies might mitigate the financial restrictions of environmental innovation.