Technological greening, eco-efficiency, and no-regret strategy
AbstractIn this paper we analyze the relationship between technological greening, eco-efficiency and no- regret strategies. By using a simple theoretical model, we evaluate the effects of technological greening on creation value, pollution level, and eco-efficiency. We show three contrasting effects of technological greening. First, technological greening may increase the pollution of a firm, and also of the whole industry. Second, the indicator of eco-efficiency can be misleading because it may improve in situations where pollution increases and/or profit decreases after technological greening. Third, technological greening that induces an improvement of the eco-efficiency indicator does not necessarily lead to a no-regret strategy. As a result, the indicator should not be used for decision making.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2010031.
Date of creation: 01 Jun 2010
Date of revision:
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technological greening; clean technology; eco-efficiency; environmental performance; rebound effect;
Find related papers by JEL classification:
- L8 - Industrial Organization - - Industry Studies: Services
- M2 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics
- Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
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- BRECHET, Thierry & JOUVET, Pierre-André, 2006. "Environmental innovation and the cost of pollution abatement," CORE Discussion Papers 2006040, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Thierry Bréchet & Philippe Michel, 2007.
"Environmental performance and equilibrium,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 40(4), pages 1078-1099, November.
- BRECHET, Thierry & MICHEL, Philippe, 2004. "Environmental performance and equilibrium," CORE Discussion Papers 2004072, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- BRECHET, Thierry & MICHEL, Philippe, . "Environmental performance and equilibrium," CORE Discussion Papers RP -2056, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Bréchet, Thierry & Jouvet, Pierre-André, 2009. "Why environmental management may yield no-regret pollution abatement options," Ecological Economics, Elsevier, vol. 68(6), pages 1770-1777, April.
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