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Policy Design, Eco-innovation and Industrial Dynamics in an Agent-Based Model: An Illustration with the REACH Regulation

Author

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  • Nabila Arfaoui
  • Eric Brouillat
  • Maïder Saint-Jean

Abstract

This paper proposes an agent-based model to study the impact of European regulation REACH on industrial dynamics. This new regulation adopted in 2007 establishes a new philosophy in how to design environmental protection and health. For this reason, REACH appears as a privileged object of study to analyze the impact of regulation on innovation strategies of firms and the structure of market. Our model focuses on the interactions between clients and suppliers in order to take into account interdependencies in the heart of vertical relationships that are upset by the new principles introduced by REACH. The main contribution of this paper is to show, through an agent-based model, how different combinations of flexible and stringent instruments designed on REACH regulation (Extended Producer Responsibility, authorization process and restrictions) create the incentives and the constraints to shape market selection and innovation.

Suggested Citation

  • Nabila Arfaoui & Eric Brouillat & Maïder Saint-Jean, 2013. "Policy Design, Eco-innovation and Industrial Dynamics in an Agent-Based Model: An Illustration with the REACH Regulation," GREDEG Working Papers 2013-22, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France, revised Oct 2013.
    • Handle: RePEc:gre:wpaper:2013-22
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    References listed on IDEAS

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    Cited by:

    1. Nabila Arfaoui, 2014. "Eco-innovation and Regulatory Push/Pull Effect in the Case of REACH Regulation: Empirical Evidence from Survey Data," GREDEG Working Papers 2014-19, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France, revised Dec 2015.

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    Keywords

    policy design; technological substitution; agent-based model; REACH;
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