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

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Author Info

  • 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.

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File URL: http://www.gredeg.cnrs.fr/working-papers/GREDEG-WP-2013-22.pdf
File Function: Revised version, 2013
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Bibliographic Info

Paper 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.

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Length: 42 pages
Date of creation: Jun 2013
Date of revision: Oct 2013
Handle: RePEc:gre:wpaper:2013-22

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Related research

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

This paper has been announced in the following NEP Reports:

References

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  1. Adam B. Jaffe & Karen Palmer, 1997. "Environmental Regulation And Innovation: A Panel Data Study," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 610-619, November.
  2. Chiaromonte, Francesca & Dosi, Giovanni, 1993. "Heterogeneity, competition, and macroeconomic dynamics," Structural Change and Economic Dynamics, Elsevier, vol. 4(1), pages 39-63, June.
  3. Popp, David, 2005. "Lessons from patents: Using patents to measure technological change in environmental models," Ecological Economics, Elsevier, vol. 54(2-3), pages 209-226, August.
  4. Rennings, Klaus, 2000. "Redefining innovation -- eco-innovation research and the contribution from ecological economics," Ecological Economics, Elsevier, vol. 32(2), pages 319-332, February.
  5. Malerba, Franco, et al, 1999. "'History-Friendly' Models of Industry Evolution: The Computer Industry," Industrial and Corporate Change, Oxford University Press, vol. 8(1), pages 3-40, March.
  6. Hahn, Robert W, 1989. "Economic Prescriptions for Environmental Problems: How the Patient Followed the Doctor's Orders," Journal of Economic Perspectives, American Economic Association, vol. 3(2), pages 95-114, Spring.
  7. Dosi, Giovanni, 1988. "Sources, Procedures, and Microeconomic Effects of Innovation," Journal of Economic Literature, American Economic Association, vol. 26(3), pages 1120-71, September.
  8. Jaffe, Adam B. & Newell, Richard G. & Stavins, Robert N., 2003. "Chapter 11 Technological change and the environment," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 1, chapter 11, pages 461-516 Elsevier.
  9. Cowan, R. & Cowan, W. & Swann, P., 1996. "A Model of Demand with Interactions Among Consumers," UWO Department of Economics Working Papers 9609, University of Western Ontario, Department of Economics.
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