Navigating the Green Path: The Role of Climate Incentives in Shaping Eco-innovation and Firm Policies

This chapter overviews the dynamic connection between climate incentives and eco-innovation. It explores how financial and non-financial climate incentives affect the trajectory of eco-innovation within firms. By tracing the historical evolution of climate incentives, this research elucidates their transformative impact on firm policies. This chapter employs bibliometric analysis to shed light on various aspects of the current research landscape concerning climate incentives and eco-innovation. Despite the evident potential of climate incentives, their implementation faces significant challenges. This chapter critically examines these challenges, offering insights into the complexities of design, global coordination, and equity concerns. In addition, the research critiques the effectiveness and fairness of these incentives, fostering a holistic understanding of the subject. Further, this research underscores the promising future research directions for climate incentives and emphasizes their pivotal role in steering the next wave of eco-innovations.