Regulations that drive environmental innovation can have mixed effects on firms. Some regulations may increase costs and reduce profits, while others can lead to new opportunities and demand. A study on German firms found that environmental regulations can lead to similar success as other types of innovation in terms of sales and cost savings. Regulations on sustainable mobility can boost sales with new products, but regulations on water management may lower this type of success. Implementing new processes to meet environmental regulations can decrease profitability, but innovations in recycling, waste management, and resource efficiency can increase profit margins.