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Environmental innovation and industrial dynamics: the contributions of evolutionary economics

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Vanessa OLTRA (GREThA UMR CNRS 5113)

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Abstract

The purpose of this article is to discuss the contributions of the evolutionary theory of innovation on the micro and meso dynamics of environmental innovations. We argue that the evolutionary literature on innovation, and more particularly on technological regimes, provides a relevant framework in order to analyse the various determinants of environmental innovations and the double externality problem in an industrial dynamics context. The article starts with an overview of the empirical literature on environmental innovations with a focus on their determinants and specificities. In section 3, we discuss the contributions of the evolutionary literature on technological regimes and argue that it can provide a relevant framework for a sectoral approach of environmental innovations. In section 4, we concentrate on the role of demand side dynamics and highlight the implications of technological competition models on the role of demand conditions in the diffusion of environmental technologies. Finally, section 5 is devoted to the implications of the evolutionary theory of innovation on the question of the transition towards more sustainable technological systems.

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Paper provided by Groupe de Recherche en Economie Théorique et Appliquée in its series Cahiers du GREThA with number 2008-28.

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Date of creation: 2008
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Handle: RePEc:grt:wpegrt:2008-28

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Related research
Keywords: Environmental innovations; industrial dynamics; evolutionary theory; technological regimes;

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Find related papers by JEL classification:
Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes

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    Other versions:
  14. David Popp & Tamara Hafner & Nick Johnstone, 2007. "Policy vs. Consumer Pressure: Innovation and Diffusion of Alternative Bleaching Technologies in the Pulp Industry," NBER Working Papers 13439, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  18. Metcalfe, J S, 1995. "Technology Systems and Technology Policy in an Evolutionary Framework," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 25-46, February.
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  23. Jeroen Bergh, 2007. "Evolutionary thinking in environmental economics," Journal of Evolutionary Economics, Springer, vol. 17(5), pages 521-549, October. [Downloadable!] (restricted)
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