Are Environmental Regulations to Promote Eco-Innovation in the Wine Sector Effective? A Study of Spanish Wineries

In a changing socio-economic and ecological context, the agri-food industry, where the use of natural resources is very important, must pay more and more attention to green and eco-innovation. Public decision-makers have started to implement measures to encourage the adoption of sustainable practices by companies, which are also pressured by supply and demand factors. This article aims to determine the factors that drive eco-innovation in the wine sector in Spain, a mature and traditional sector characterized by its high fragmentation. In particular, we sought to determine the role environmental regulations play in promoting eco-innovation in the sector. To this end, an empirical study was developed using a structural equation model established using a partial least squares technique for a sample of 251 wineries from all over the country. The study shows that the current regulatory framework inhibits eco-innovation in Spanish wineries, who are more encouraged by positioning and external motivation factors.