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[ D] Sustainable economic systems require environmentally relevant innovations in the sense of far-reaching and long-term changes in technologies, infrastructures, lifestyles and institutions. Our attention is focused on whether and how it is possible to stimulate such innovations by regulation. The subject of investigation is the economic impact of environmental innovations, especially their impact on employment. On the theoretical front this research area largely draws on neoclassical approaches in environmental, innovation and labor market economics.
