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Which policy instruments to induce clean innovating?

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  • Veugelers, Reinhilde

Abstract

In view of the sizeable climate change challenge, we need a clean innovation machine operating at full speed. Beyond the supply of public clean R&D infrastructure and clean public procurement, the development and adoption of new clean technologies by the private sector needs to be assured to reduce Green House Gas (GHG) emissions. The private clean innovation machine, left on its own, is not up to this challenge. It needs government intervention to address the combination of environmental and knowledge externalities and overcome path dependencies. The firm level evidence presented in this contribution on the motives of private sector firms for introducing clean innovations from the latest Flemish CIS eco-innovation survey confirms that firms are responsive to eco-policy demand interventions. At the same time, the high importance of demand pull from customers and voluntary codes of conduct or voluntary sector agreements as drivers for introducing clean innovations, is a reminder of the internal strength of the private innovation machine, which governments need to leverage. Policy interventions are shown to be more powerful to induce the adoption and development of new clean technologies when designed in policy mix and time consistently, affecting future expectations.

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Bibliographic Info

Article provided by Elsevier in its journal Research Policy.

Volume (Year): 41 (2012)
Issue (Month): 10 ()
Pages: 1770-1778

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Handle: RePEc:eee:respol:v:41:y:2012:i:10:p:1770-1778

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Web page: http://www.elsevier.com/locate/respol

Related research

Keywords: Clean innovations; Private; Development; Diffusion; Policy mix; Demand-inducing instruments;

References

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  1. Brunnermeier, Smita B. & Cohen, Mark A., 2003. "Determinants of environmental innovation in US manufacturing industries," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 278-293, March.
  2. Valentina Bosetti & Carlo Carraro & Romain Duval & Alessandra Sgobbi & Massimo Tavoni, 2009. "The Role of R&D and Technology Diffusion in Climate Change Mitigation: New Perspectives Using the WITCH Model," OECD Economics Department Working Papers 664, OECD Publishing.
  3. Lanjouw, Jean Olson & Mody, Ashoka, 1996. "Innovation and the international diffusion of environmentally responsive technology," Research Policy, Elsevier, vol. 25(4), pages 549-571, June.
  4. Popp, David, 2006. "International innovation and diffusion of air pollution control technologies: the effects of NOX and SO2 regulation in the US, Japan, and Germany," Journal of Environmental Economics and Management, Elsevier, vol. 51(1), pages 46-71, January.
  5. Nick Johnstone & Ivan Hascic & David Popp, 2008. "Renewable Energy Policies And Technological Innovation: Evidence Based On Patent Counts," NBER Working Papers 13760, National Bureau of Economic Research, Inc.
  6. Adam B. Jaffe & Karen Palmer, 1997. "Environmental Regulation And Innovation: A Panel Data Study," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 610-619, November.
  7. Philippe Aghion & Reinhilde Veugelers & Clément Serre, 2009. "Cold Start for the Green Innovation Machine," Policy Contributions 354, Bruegel.
  8. David Popp, 2003. "Pollution control innovations and the Clean Air Act of 1990," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 22(4), pages 641-660.
  9. Jaffe, Adam B. & Newell, Richard G. & Stavins, Robert N., 2003. "Chapter 11 Technological change and the environment," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 1, chapter 11, pages 461-516 Elsevier.
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Citations

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Cited by:
  1. Hottenrott, Hanna & Rexhäuser, Sascha & Veugelers, Reinhilde, 2012. "Green innovations and organizational change: Making better use of environmental technology," ZEW Discussion Papers 12-043, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  2. Gilli, M. & Mazzanti, M. & Nicolli, F., 2013. "Sustainability and competitiveness in evolutionary perspectives: Environmental innovations, structural change and economic dynamics in the EU," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 45(C), pages 204-215.
  3. Gilli, Marianna & Mancinelli, Susanna & Mazzanti, Massimiliano, 2014. "Innovation complementarity and environmental productivity effects: Reality or delusion? Evidence from the EU," Ecological Economics, Elsevier, vol. 103(C), pages 56-67.
  4. Christian Le Bas & Nicolas Poussing, 2013. "Firm voluntary measures for environmental changes, eco-innovations and CSR : Empirical analysis based on data surveys," Working Papers halshs-00838005, HAL.
  5. van der Vooren & Eric Brouillat, 2013. "Evaluating CO2 reduction policy portfolios in the automotive sector," Innovation Studies Utrecht (ISU) working paper series 13-01, Utrecht University, Department of Innovation Studies, revised Feb 2013.
  6. Davide Antonioli & Simone Borghesi & Massimiliano Mazzanti, 2014. "Are Regional Systems Greening the Economy? the Role of Environmental Innovations and Agglomeration Forces," Working Papers 2014.42, Fondazione Eni Enrico Mattei.
  7. Cainelli, Giulio & Mazzanti, Massimiliano, 2013. "Environmental innovations in services: Manufacturing–services integration and policy transmissions," Research Policy, Elsevier, vol. 42(9), pages 1595-1604.
  8. Rogge, Karoline S. & Reichardt, Kristin, 2013. "Towards a more comprehensive policy mix conceptualization for environmental technological change: A literature synthesis," Working Papers "Sustainability and Innovation" S3/2013, Fraunhofer Institute for Systems and Innovation Research (ISI).
  9. Massimiliano Mazzanti & Davide Antonioli & Francesco Nicolli & Marianna Gilli, 2013. "Information Technology, Environmental Innovations and Complementarity Strategies," Working Papers 2013132, University of Ferrara, Department of Economics.
  10. María Teresa Costa & José García-Quevedo & Agustí Segarra, 2014. "Energy efficiency determinants: an empirical analysis of Spanish innovative firms," Working Papers 2014/10, Institut d'Economia de Barcelona (IEB).
  11. Giulio Cainelli & Massimiliano Mazzanti & Alessio D'Amato, 2013. "Adoption of Waste-Reducing Technology in Manufacturing: Regional Factors and Policy Issues," Working Papers 2013162, University of Ferrara, Department of Economics.

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