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Technological greening, eco-efficiency, and no-regret strategy

Author

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  • BRECHET, Thierry

    (Université catholique de Louvain, CORE and Chair Lhoist Berghamns in Environmental Economics and Management, B-1348 Louvain-la-Neuve, Belgium.)

  • LY, Sylvette

    (Université catholique de Louvain, CORE and Chair Lhoist Berghamns in Environmental Economics and Management, B-1348 Louvain-la-Neuve, Belgium.)

Abstract

In this paper we analyze the relationship between technological greening, eco-efficiency and no- regret strategies. By using a simple theoretical model, we evaluate the effects of technological greening on creation value, pollution level, and eco-efficiency. We show three contrasting effects of technological greening. First, technological greening may increase the pollution of a firm, and also of the whole industry. Second, the indicator of eco-efficiency can be misleading because it may improve in situations where pollution increases and/or profit decreases after technological greening. Third, technological greening that induces an improvement of the eco-efficiency indicator does not necessarily lead to a no-regret strategy. As a result, the indicator should not be used for decision making.

Suggested Citation

  • BRECHET, Thierry & LY, Sylvette, 2010. "Technological greening, eco-efficiency, and no-regret strategy," LIDAM Discussion Papers CORE 2010031, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2010031
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    References listed on IDEAS

    as
    1. Bréchet, Thierry & Jouvet, Pierre-André, 2009. "Why environmental management may yield no-regret pollution abatement options," Ecological Economics, Elsevier, vol. 68(6), pages 1770-1777, April.
    2. Pierre-Philippe Combes & Thierry Mayer & Jacques-François Thisse, 2008. "Economic Geography: The Integration of Regions and Nations," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00311000, HAL.
    3. Bréchet, Thierry & Jouvet, Pierre-André, 2008. "Environmental innovation and the cost of pollution abatement revisited," Ecological Economics, Elsevier, vol. 65(2), pages 262-265, April.
    4. Huriot,Jean-Marie & Thisse,Jacques-François (ed.), 2009. "Economics of Cities," Cambridge Books, Cambridge University Press, number 9780521118279, January.
    5. BRECHET, Thierry & JOUVET, Pierre-André, 2006. "Environmental innovation and the cost of pollution abatement," LIDAM Discussion Papers CORE 2006040, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    6. Thierry Bréchet & Philippe Michel, 2007. "Environmental performance and equilibrium," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 40(4), pages 1078-1099, November.
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    JEL classification:

    • L8 - Industrial Organization - - Industry Studies: Services
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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