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Explaining adoption of end of pipe solutions and clean technologies--Determinants of firms' investments for reducing emissions to air in four sectors in Sweden

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  • Hammar, Henrik
  • Löfgren, Åsa

Abstract

We estimate firms' probability of technological adoption based on a firm level panel data set from four major sectors in Sweden between 2000 and 2003. Technological adoption is measured by environmental protection investments (EPI), and we focus particularly on differences between the decisions to adopt end of pipe solutions and clean technologies. We find that there seem to be different drivers for investments in end of pipe solutions and clean technologies, in particular we show that the probability of a firm investing in clean technologies to reduce emissions to air increases if the firm has expenditures for R&D related to environmental protection (green R&D), while price on energy is important for the investment in end of pipe solutions. Furthermore, our results indicate complementarity between the two types of technologies.

Suggested Citation

  • Hammar, Henrik & Löfgren, Åsa, 2010. "Explaining adoption of end of pipe solutions and clean technologies--Determinants of firms' investments for reducing emissions to air in four sectors in Sweden," Energy Policy, Elsevier, vol. 38(7), pages 3644-3651, July.
  • Handle: RePEc:eee:enepol:v:38:y:2010:i:7:p:3644-3651
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    Cited by:

    1. Bostian, Moriah & Färe, Rolf & Grosskopf, Shawna & Lundgren, Tommy, 2016. "Environmental investment and firm performance: A network approach," Energy Economics, Elsevier, vol. 57(C), pages 243-255.
    2. Henriksson, Eva & Söderholm, Patrik & Wårell, Linda, 2012. "Industrial electricity demand and energy efficiency policy: The role of price changes and private R&D in the Swedish pulp and paper industry," Energy Policy, Elsevier, vol. 47(C), pages 437-446.
    3. Ghisetti, Claudia & Pontoni, Federico, 2015. "Investigating policy and R&D effects on environmental innovation: A meta-analysis," Ecological Economics, Elsevier, vol. 118(C), pages 57-66.
    4. Ziółkowsk Bożydar, 2012. "Effectitions as a new instrument in sustainable development policy – the conceptual approach," Management, De Gruyter Open, vol. 16(2), pages 282-295, December.
    5. Triguero, Angela & Moreno-Mondéjar, Lourdes & Davia, María A., 2014. "The influence of energy prices on adoption of clean technologies and recycling: Evidence from European SMEs," Energy Economics, Elsevier, vol. 46(C), pages 246-257.
    6. Löfgren, Åsa & Wråke, Markus & Hagberg, Tomas & Roth, Susanna, 2013. "The Effect of EU-ETS on Swedish Industry's Investment in Carbon Mitigating Technologies," Working Papers in Economics 565, University of Gothenburg, Department of Economics.
    7. Yasushi Ito, 2012. "The effects of carbon/energy taxes on R&D expenditure in Sweden," Chapters,in: Carbon Pricing, Growth and the Environment, chapter 14, pages 220-229 Edward Elgar Publishing.
    8. Bonilla, Jorge & Coria, Jessica & Mohlin, Kristina & Sterner, Thomas, 2014. "Diffusion of NOx abatement technologies in Sweden," Working Papers in Economics 585, University of Gothenburg, Department of Economics.
    9. Teng Ma & Kenji Takeuchi, 2017. "Cleaning up the air for the 2008 Beijing Olympic Games: Empirical study on China’s thermal power sector," Discussion Papers 1718, Graduate School of Economics, Kobe University.
    10. Thambiran, Tirusha & Diab, Roseanne D., 2011. "Air quality and climate change co-benefits for the industrial sector in Durban, South Africa," Energy Policy, Elsevier, vol. 39(10), pages 6658-6666, October.
    11. Giulio Guarini & Giuseppe Garofalo & Alessandro Federici, 2014. "A Virtuous Cumulative Growth Circle among Innovation, Inclusion and Sustainability? A Structuralist-Keynesian Analysis with an Application on Europe," GREDEG Working Papers 2014-39, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
    12. Bonilla, Jorge & Coria, Jessica & Mohlin, Kristina & Sterner, Thomas, 2015. "Refunded emission payments and diffusion of NOx abatement technologies in Sweden," Ecological Economics, Elsevier, vol. 116(C), pages 132-145.
    13. Giulio Guarini, 2015. "Complementarity between environmental efficiency and labour productivity in a cumulative growth process," PSL Quarterly Review, Economia civile, vol. 68(272), pages 41-56.

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