Diffusion of environmental innovations: Sector differences and explanation range of factors

Abstract

Empirical research on the diffusion of environmental product and service innovations has significant limits: almost all investigations focus on just a single sector or technology, usually energy, and concern a small number of diffusion cases. Therefore, it is hardly possible to generalize across sectors and to identify potential differences between sectors. We address this research gap with an investigation of a large sample of 130 diffusion cases from 11 different sectors. We apply a new mixed-method approach of statistical analysis and qualitative extreme case analysis. We provide insights on the differences in dissemination rates and knowledge on sector-specific factors. This helps to explain diffusion processes and design effective sector-specific transition policies. The concept of explanation range of factors clarifies the role and relevance of different diffusion factors and opens up avenues for further research on environmental innovation. Based on our findings, it can be concluded that some factors explain diffusion in (almost) all cases (high explanatory range), some only in specific sectors (medium explanatory range), and some merely in individual cases (low explanatory range).