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Polluting emissions standards and clean technology trajectories under competitive selection and supply chain pressure

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  • Maïder SAINT-JEAN (E3i, IFReDE-GRES)

Abstract

Based on a model of industrial dynamics, this paper examines the impact of polluting emissions standards on trajectories of clean technologies implemented by firms subject to competitive selection and supply chain pressure. The model incorporates a few stylised facts on the relationships between environmental regulation, innovation and diffusion. The main objective is to highlight the forces influencing the long term dynamics of an industry faced with evolving emissions standards in a ‘history-friendly’ way. The paper gives guidance to the conditions of dynamic efficiency of emissions standards taking into account the coevolution of technology, user requirements and market structure. We show that emission standards not only play a significant role in orienting research and innovation activities of supplier firms, but they are also likely to support the diffusion of environmental innovation in the supply chain. In some cases, emission standards lead to prevent both a situation of lock-in on the supply side and a situation of behavioural inertia on the user side. Standards may thus lead to preserve a certain form of technological and behavioural diversity. Based on the computer simulations, it will be shown that the efficiency of standards depends on the nature of performance standards (process or product), on the market structure and on the timing of intervention.

Suggested Citation

  • Maïder SAINT-JEAN (E3i, IFReDE-GRES), 2005. "Polluting emissions standards and clean technology trajectories under competitive selection and supply chain pressure," Cahiers du GRES (2002-2009) 2005-16, Groupement de Recherches Economiques et Sociales.
  • Handle: RePEc:grs:wpegrs:2005-16
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    File URL: http://cahiersdugres.u-bordeaux4.fr/2005/2005-16.pdf
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    References listed on IDEAS

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    1. Jean Cavailhès & Dominique Peeters & Evangelos Sékeris & Jacques-François Thisse, 2003. "La ville périurbaine," Revue économique, Presses de Sciences-Po, pages 5-23.
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    2. Fujita,Masahisa, 1991. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521396455, November.
    3. Brueckner, Jan K. & Thisse, Jacques-Francois & Zenou, Yves, 1999. "Why is central Paris rich and downtown Detroit poor?: An amenity-based theory," European Economic Review, Elsevier, pages 91-107.
    4. Peter Mieszkowski & Edwin S. Mills, 1993. "The Causes of Metropolitan Suburbanization," Journal of Economic Perspectives, American Economic Association, vol. 7(3), pages 135-147, Summer.
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    Cited by:

    1. Brandenburg, Marcus & Govindan, Kannan & Sarkis, Joseph & Seuring, Stefan, 2014. "Quantitative models for sustainable supply chain management: Developments and directions," European Journal of Operational Research, Elsevier, vol. 233(2), pages 299-312.

    More about this item

    Keywords

    environmental innovation; industrial dynamics; environmental supply chain pressure; emission standards;

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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