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The Adoption of Energy Efficiency Enhancing Technologies

Author

Listed:
  • Erik Verhoef
  • Peter Nijkamp

    (Vrije Universiteit Amsterdam)

Abstract

This paper analyses the adoption of energy-efficiency enhancing technologies by heterogeneous firms. The fact that energy use does not only cause external environmental costs through pollution, but also directly affects the profitability of the firm and hence its behaviour on input and output markets is taken for granted. It is demonstrated that the consideration of such market processes may have important implications for the efficiency of environmental policies concerned with energy use. The analysis focuses in particular on the efficiency of the market-led adoption and diffusion process under variouspolicy regimes. It is shown that the promotion of energy-efficiency enhancing technologies might have unexpected effects in that it could lead to an increase in energy use, while the use of energy taxes might actually reduce the attractiveness of energy-saving technologies.

Suggested Citation

  • Erik Verhoef & Peter Nijkamp, 1997. "The Adoption of Energy Efficiency Enhancing Technologies," Tinbergen Institute Discussion Papers 97-077/3, Tinbergen Institute.
  • Handle: RePEc:tin:wpaper:19970077
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    References listed on IDEAS

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    More about this item

    Keywords

    environmental regulation; energy; adoption of technologies; heterogeneous firms; externalities;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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