“…Yet due to the existence of dual externalities including environmental externalities and knowledge spillovers, firms lack the incentives to invest voluntarily in eco-innovation activities (Jaffe, Newell, & Stavins, 2003). In this context, some normative analysis suggest that public policies on energy saving and environmental protection, when appropriately designed, can stimulate the innovation and adoption of environmental-friendly technologies (López-Gamero, Claver-Cortés, & Molina-Azorín, 2009;Perino & Requate, 2012).…”