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Technological greening, eco-efficiency, and no-regret strategy

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  • BRECHET, Thierry

    ()
    (Université catholique de Louvain, CORE and Chair Lhoist Berghamns in Environmental Economics and Management, B-1348 Louvain-la-Neuve, Belgium.)

  • LY, Sylvette

    ()
    (Université catholique de Louvain, CORE and Chair Lhoist Berghamns in Environmental Economics and Management, B-1348 Louvain-la-Neuve, Belgium.)

Abstract

In 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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Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2010031.

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Date of creation: 01 Jun 2010
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Handle: RePEc:cor:louvco:2010031

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Keywords: technological greening; clean technology; eco-efficiency; environmental performance; rebound effect;

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  1. 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).
  2. Thierry Bréchet & Philippe Michel, 2007. "Environmental performance and equilibrium," Canadian Journal of Economics, Canadian Economics Association, vol. 40(4), pages 1078-1099, November.
  3. 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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