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Which policy instruments to induce clean innovating?

  • Veugelers, Reinhilde

In view of the sizeable climate change challenge, we need a clean innovation machine operating at full speed. Beyond the supply of public clean R&D infrastructure and clean public procurement, the development and adoption of new clean technologies by the private sector needs to be assured to reduce Green House Gas (GHG) emissions. The private clean innovation machine, left on its own, is not up to this challenge. It needs government intervention to address the combination of environmental and knowledge externalities and overcome path dependencies. The firm level evidence presented in this contribution on the motives of private sector firms for introducing clean innovations from the latest Flemish CIS eco-innovation survey confirms that firms are responsive to eco-policy demand interventions. At the same time, the high importance of demand pull from customers and voluntary codes of conduct or voluntary sector agreements as drivers for introducing clean innovations, is a reminder of the internal strength of the private innovation machine, which governments need to leverage. Policy interventions are shown to be more powerful to induce the adoption and development of new clean technologies when designed in policy mix and time consistently, affecting future expectations.

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Article provided by Elsevier in its journal Research Policy.

Volume (Year): 41 (2012)
Issue (Month): 10 ()
Pages: 1770-1778

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Handle: RePEc:eee:respol:v:41:y:2012:i:10:p:1770-1778
Contact details of provider: Web page: http://www.elsevier.com/locate/respol

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  1. David Popp, 2003. "Pollution control innovations and the Clean Air Act of 1990," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 22(4), pages 641-660.
  2. Nick Johnstone & Ivan Hascic & David Popp, 2008. "Renewable Energy Policies And Technological Innovation: Evidence Based On Patent Counts," NBER Working Papers 13760, National Bureau of Economic Research, Inc.
  3. 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.
  4. Brunnermeier, Smita B. & Cohen, Mark A., 2003. "Determinants of environmental innovation in US manufacturing industries," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 278-293, March.
  5. Arundel, Anthony & Kemp, Rene, 2009. "Measuring Eco-Innovation," MERIT Working Papers 017, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  6. Popp, David, 2006. "International innovation and diffusion of air pollution control technologies: the effects of NOX and SO2 regulation in the US, Japan, and Germany," Journal of Environmental Economics and Management, Elsevier, vol. 51(1), pages 46-71, January.
  7. Philippe Aghion & Reinhilde Veugelers & David Hemous, 2009. "No Green Growth Without Innovation," Policy Briefs 353, Bruegel.
  8. Adam B. Jaffe & Karen Palmer, 1996. "Environmental Regulation and Innovation: A Panel Data Study," NBER Working Papers 5545, National Bureau of Economic Research, Inc.
  9. Lanjouw, Jean Olson & Mody, Ashoka, 1996. "Innovation and the international diffusion of environmentally responsive technology," Research Policy, Elsevier, vol. 25(4), pages 549-571, June.
  10. Valentina Bosetti & Carlo Carraro & Romain Duval & Alessandra Sgobbi & Massimo Tavoni, 2009. "The Role of R&D and Technology Diffusion in Climate Change Mitigation: New Perspectives Using the Witch Model," Working Papers 2009.14, Fondazione Eni Enrico Mattei.
  11. Philippe Aghion & Reinhilde Veugelers & Clément Serre, 2009. "Cold Start for the Green Innovation Machine," Policy Contributions 354, Bruegel.
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