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Can hurricanes drive green innovations?

Panagiotis Piperopoulos1, Eduardo Jimenez-Moro2, Miguel Dindial3

  • 1Graduate School of Business and Law, RMIT University, 379-405 Russell Street, Melbourne, Vic, 3000, Australia.

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|December 3, 2022
PubMed
Summary

Hurricanes can spur green innovation in Small Island Developing States (SIDS), showing a U-shaped effect. While initial disasters hinder innovation, repeated exposure drives green development, unlike traditional innovation.

Keywords:
CaribbeanGreen innovationHurricanesInnovationNatural disastersSmall island developing states (SIDS)

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Area of Science:

  • Environmental Economics
  • Innovation Studies
  • Disaster Management

Background:

  • Small Island Developing States (SIDS) are particularly vulnerable to natural disasters like hurricanes.
  • Green innovation is crucial for sustainable development in vulnerable regions.
  • The relationship between disaster events and green innovation remains underexplored.

Purpose of the Study:

  • To investigate the impact of hurricanes on green innovation in SIDS.
  • To identify key drivers and barriers for green innovation adoption in SIDS.
  • To inform policy design for fostering environmental sustainability.

Main Methods:

  • Utilized a unique dataset linking hurricane occurrences with green innovation activities in SIDS.
  • Employed econometric analysis to examine the relationship between hurricanes and innovation.
  • Assessed the influence of government regulations, incentives, and societal factors.

Main Results:

  • A U-shaped relationship exists between hurricane frequency and green innovation.
  • Government regulations positively influence green innovation, but financial incentives do not.
  • Customer demand and industry environmental standards are significant drivers of green innovation.
  • Hurricanes do not significantly affect traditional innovation types.

Conclusions:

  • Natural disasters, specifically hurricanes, can act as a catalyst for green innovation in SIDS.
  • Policy interventions should focus on regulatory frameworks and societal influences rather than solely financial incentives.
  • Understanding this nexus is vital for enhancing resilience and promoting sustainable practices in SIDS.