Environmental and Climate Innovation: Limitations, Prices and Policies
AbstractThere is currently much hope about environmental innovation and green technologies, notably as a response to the threat of climate change. This paper offers a critical perspective on the role of technological innovation to solving environmental problems, based on considering empirical economic studies, energy and environmental rebound, the energy return on energy investment (EROEI) of alternative energy technologies, and various crowding out effects. Features of green technologies and motives of green innovators are briefly discussed. This is followed by an examination of the desirable mix of environmental and innovation policies to stimulate environmental innovation, to escape current and to evade early new lock-ins, and to avoid the occurrence of a â€œgreen paradoxâ€. This involves an evaluation of specific policy instruments from an environmental innovation angle. An extended argument is offered to clarify that environmental (CO2) pricing is crucial â€“ even though insufficient â€“ for environmental innovation to deliver definite solutions. In other words, environmental innovation (policy) is no substitute for environmental regulation (through prices). The paper also discusses the importance for environmental innovation of international agreements for regulation of greenhouse gas emissions and international coordination of innovation efforts.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Max Planck Institute of Economics, Evolutionary Economics Group in its series Papers on Economics and Evolution with number 2010-23.
Date of creation: Jan 2011
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-AGR-2011-02-05 (Agricultural Economics)
- NEP-ALL-2011-02-05 (All new papers)
- NEP-ENE-2011-02-05 (Energy Economics)
- NEP-ENV-2011-02-05 (Environmental Economics)
- NEP-INO-2011-02-05 (Innovation)
- NEP-REG-2011-02-05 (Regulation)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jeroen C. J. M. van den Bergh & John M. Gowdy, 2003.
"The microfoundations of macroeconomics: an evolutionary perspective,"
Cambridge Journal of Economics,
Oxford University Press, vol. 27(1), pages 65-84, January.
- Jeroen C.J.M. van den Bergh & John M. Gowdy, 2000. "The Microfoundations of Macroeconomics: An Evolutionary Perspective," Tinbergen Institute Discussion Papers 00-021/3, Tinbergen Institute.
- Vanessa OLTRA & Maïder SAINT JEAN, 2009. "Environmental Innovations and Industrial Dynamics (In French)," Cahiers du GREThA 2009-22, Groupe de Recherche en Economie Théorique et Appliquée.
- Jeroen Bergh, 2011. "Energy Conservation More Effective With Rebound Policy," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 48(1), pages 43-58, January.
- van den Bergh, Jeroen C.J.M., 2008. "Optimal diversity: Increasing returns versus recombinant innovation," Journal of Economic Behavior & Organization, Elsevier, vol. 68(3-4), pages 565-580, December.
- van den Heuvel, Stijn T.A. & van den Bergh, Jeroen C.J.M., 2009. "Multilevel assessment of diversity, innovation and selection in the solar photovoltaic industry," Structural Change and Economic Dynamics, Elsevier, vol. 20(1), pages 50-60, March.
- van den Bergh, Jeroen C.J.M., 2008. "Environmental regulation of households: An empirical review of economic and psychological factors," Ecological Economics, Elsevier, vol. 66(4), pages 559-574, July.
- Wikipedia:Articles for deletion/Useful work growth theory in Wikipedia (English)
- Wikipedia:Articles for deletion/Log/2012 June 14 in Wikipedia (English)
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Karin Serfling).
If references are entirely missing, you can add them using this form.