Abstract

This study tackles the question: how do new air pollution regulations interact with other eco-innovation drivers in the adoption of environmental technologies in the shipping industry? In the North Sea, Baltic Sea, and the English Channel, short sea shipping is subject to strict requirements on sulphur emissions by the European Union and the International Maritime Organization after the creation of a Sulphur Emission Control Area. This regulation benefits from market conditions which slightly push the shipping companies to embrace environmental technologies when operational costs increase due to expenses such as increasing fuel prices. Meanwhile, voluntary initiatives like participating in eco-labelling schemes can motivate eco-innovations, especially cleaner-processes. The research contributes to the ongoing debate about eco-innovation characteristics in different industrial sectors, but more specifically, it moves forward the proposition of dynamic interactions between regulation, technology, business and markets, which modify the dominant focus on market pull and technological push.

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