Policy Design, Eco-innovation and Industrial Dynamics in an Agent-Based Model: An Illustration with the REACH Regulation
AbstractThis 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.
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Bibliographic InfoPaper provided by Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis in its series GREDEG Working Papers with number 2013-22.
Length: 42 pages
Date of creation: Jun 2013
Date of revision: Oct 2013
policy design; technological substitution; agent-based model; REACH;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-07-15 (All new papers)
- NEP-CMP-2013-07-15 (Computational Economics)
- NEP-INO-2013-07-15 (Innovation)
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