Explaining adoption of end of pipe solutions and clean technologies
AbstractWe estimate firms’ probability of technological adoption based on an unbalanced firm level panel data set from four major sectors during the 2000-2003 period. Technological adoption is measured by environ-mental protection investments (EPIs), and we focus particularly on differences between the decisions to adopt end of pipe solutions and clean technology. We find that the probability of a firm to undertake investments in clean technologies to reduce emissions to air increases if the firm has expenditures for R&D related to environmental protec-tion (green R&D). We also find that firm specific energy expenditures contribute in explaining investments in end of pipe solutions, while this factor is not significant for investments in clean technologies. Furthermore, the results show that the two types of technologies are complements with respect to the investment decision, which indicates that policies that stimulate investments in one type of technology tend to affect investment in the other positively as well. In conclusion, pol-icy makers might want to contemplate environmental policy measures that stimulate green R&D in order to stimulate technological adoption.
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Bibliographic InfoPaper provided by National Institute of Economic Research in its series Working Paper with number 102.
Length: 28 pages
Date of creation: 01 Oct 2007
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-01-26 (All new papers)
- NEP-ENE-2008-01-26 (Energy Economics)
- NEP-ENV-2008-01-26 (Environmental Economics)
- NEP-IPR-2008-01-26 (Intellectual Property Rights)
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