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Explaining adoption of end of pipe solutions and clean technologies

  • Hammar, Henrik

    (National Institute of Economic Research)

  • Löfgren, Åsa


    (Department of Economics, Göteborg University, P.O. Box 640, SE 405 30 Göteborg)

We 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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Paper provided by National Institute of Economic Research in its series Working Paper with number 102.

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Length: 28 pages
Date of creation: 01 Oct 2007
Date of revision:
Handle: RePEc:hhs:nierwp:0102
Contact details of provider: Postal: National Institute of Economic Research, P.O. Box 3116, SE-103 62 Stockholm, Sweden
Phone: 46-(0)8-453 59 00
Fax: 46-(0)8-453 59 80
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  17. Newell, Richard & Anderson, Soren, 2002. "Information Programs for Technology Adoption: The Case of Energy-Efficiency Audits," Discussion Papers dp-02-58, Resources For the Future.
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