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Environmental policy and innovations

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  • Yoram Krozer
  • Andries Nentjes

Abstract

The paper defines and uses the concepts environmental policy cycle and innovation cycle and explores the links between the two in search for an environmental policy that creates incentives for innovation in environmental technology. We conclude that key factors are shortening the period the bureaucracy takes for preparing new environmental requirements, transparency and consistency of bureaucratic and political decision‐making and fast and strict implementation with environmental policy instruments that give pollution sources freedom in their choice of suitable technology. Economic instruments provide strong incentives for innovation because they speed up implementation. Large R&D subsidies may be needed to make technology development profitable under the conventional policy of direct regulation by emission standards and regulation by way of covenants. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.

Suggested Citation

  • Yoram Krozer & Andries Nentjes, 2008. "Environmental policy and innovations," Business Strategy and the Environment, Wiley Blackwell, vol. 17(4), pages 219-229, May.
    • Handle: RePEc:bla:bstrat:v:17:y:2008:i:4:p:219-229
    DOI: 10.1002/bse.513
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    References listed on IDEAS

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    1. Milliman, Scott R. & Prince, Raymond, 1989. "Firm incentives to promote technological change in pollution control," Journal of Environmental Economics and Management, Elsevier, vol. 17(3), pages 247-265, November.
    2. David Calef & Robert Goble, 2005. "The Allure of Technology: How France and California Promoted Electric Vehicles to Reduce Urban Air Pollution," Working Papers 2005.7, Fondazione Eni Enrico Mattei.
    3. Downing, Paul B. & White, Lawrence J., 1986. "Innovation in pollution control," Journal of Environmental Economics and Management, Elsevier, vol. 13(1), pages 18-29, March.
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    Cited by:

    1. Muyao Li & Jinsong Zhang & Ramakrishnan Ramanathan & Ruiqian Li, 2020. "Opening the Black Box: The Impacts of Environmental Regulations on Technological Innovation," IJERPH, MDPI, vol. 17(12), pages 1-18, June.
    2. Alexander Rodriguez‐Melo & S. Afshin Mansouri, 2011. "Stakeholder Engagement: Defining Strategic Advantage for Sustainable Construction," Business Strategy and the Environment, Wiley Blackwell, vol. 20(8), pages 539-552, December.
    3. Nigel Martin & John Rice, 2010. "Analysing emission intensive firms as regulatory stakeholders: a role for adaptable business strategy," Business Strategy and the Environment, Wiley Blackwell, vol. 19(1), pages 64-75, January.
    4. Olaf Weber, 2014. "Environmental, Social and Governance Reporting in China," Business Strategy and the Environment, Wiley Blackwell, vol. 23(5), pages 303-317, July.
    5. Yoram Krozer & Frans Coenen & Jenica Hanganu & Maia Lordkipanidze & Madalina Sbarcea, 2020. "Towards Innovative Governance of Nature Areas," Sustainability, MDPI, vol. 12(24), pages 1-18, December.
    6. Helena Forsman, 2013. "Environmental Innovations as a Source of Competitive Advantage or Vice Versa?," Business Strategy and the Environment, Wiley Blackwell, vol. 22(5), pages 306-320, July.

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