Cleaner and Responsible Consumption (Mar 2025)
Environmental innovation and carbon emissions reduction in European healthcare: The moderating role of environmental monitoring practices
Abstract
This study examines the impact of environmental innovation on carbon emissions in the healthcare sector, with a focus on the moderating role of environmental monitoring. Using a panel dataset of 1210 publicly listed healthcare firms across ten European countries from 2012 to 2021, the study investigates the nuanced dynamics between innovation, monitoring, and emissions outcomes. The findings highlight a critical challenge, as innovation efforts can initially intensify environmental pressures due to increased energy consumption, resource use, or operational expansion. However, the integration of robust environmental monitoring significantly mitigates this effect, ensuring that innovation translates into measurable reductions in emissions over time. Additional analyses demonstrate that environmental innovation significantly influences emissions for both loss-making and profitable firms, but the effects vary in scope and magnitude. Moreover, monitoring plays a critical role in both loss-making and profitable organizations to optimize the outcomes of environmental innovation. The study contributes to the literature by highlighting the critical role of environmental monitoring in bridging the gap between innovation and sustainability, providing empirical support for both institutional theory and stakeholder theory. It also offers practical implications for managers and policymakers, emphasizing the importance of integrating monitoring systems into innovation strategies to enhance accountability and achieve long-term emissions reductions. This research concentrates on the healthcare sector, addressing an important gap in understanding the alignment of environmental practices with sustainability goals in industries marked by intricate environmental footprints and regulatory frameworks.
