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The Diffusion of Biological Waste-Water Treatment Plants in the Dutch Food and Beverage Industry

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  • René Kemp

Abstract

This article develops an economic model of environmental technology adoption decisions. The model is applied econometrically to the diffusion of biological waste-water treatment plants in the Dutch food and beverage industry. It shows that it is possible to explain the overall diffusion pattern of biological waste-water treatment plants in terms of a rational choice model in which prospective adopters trade off the costs of effluent treatment against the savings on effluent tax payments. Effluent charges are shown to be a significant positive factor in the timing of adoption of biological effluent treatment plants. This result is brought out by both the rational choice and the epidemic models. None of the models however can explain year-to-year changes in the ownership of biological waste-water treatment plants during the 1974–91 period, which suggests that there are other factors, not included in the model, that affect the timing of adoption. Copyright Kluwer Academic Publishers 1998

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  • René Kemp, 1998. "The Diffusion of Biological Waste-Water Treatment Plants in the Dutch Food and Beverage Industry," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 12(1), pages 113-136, July.
    • Handle: RePEc:kap:enreec:v:12:y:1998:i:1:p:113-136
    DOI: 10.1023/A:1016078930151
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    Cited by:

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    2. Elofsson, Katarina, 2014. "International knowledge diffusion and its impact on the cost-effective clean-up of the Baltic Sea," Working Paper Series 2014:06, Swedish University of Agricultural Sciences, Department Economics.
    3. Marc Baudry & Clément Bonnet, 2016. "Demand pull isntruments and the development of wind power in Europe: A counter-factual analysis," Working Papers 1607, Chaire Economie du climat.
    4. Stavins, Robert & Jaffe, Adam & Newell, Richard, 2000. "Technological Change and the Environment," Working Paper Series rwp00-002, Harvard University, John F. Kennedy School of Government.
    5. Pizer, William A. & Popp, David, 2008. "Endogenizing technological change: Matching empirical evidence to modeling needs," Energy Economics, Elsevier, vol. 30(6), pages 2754-2770, November.
    6. Marc Baudry & Clément Bonnet, 2015. "Market pull instruments and the development of wind power in Europe: a counterfactual analysis," EconomiX Working Papers 2015-18, University of Paris Nanterre, EconomiX.
    7. Antoine Dechezleprêtre & David Popp, 2015. "Fiscal and Regulatory Instruments for Clean Technology Development in the European Union," CESifo Working Paper Series 5361, CESifo.
    8. Popp, David & Newell, Richard G. & Jaffe, Adam B., 2010. "Energy, the Environment, and Technological Change," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 873-937, Elsevier.
    9. Elofsson, Katarina & Gren, Ing-Marie, 2014. "Cost-efficient climate policies for interdependent and uncertain carbon pools," Working Paper Series 2014:7, Swedish University of Agricultural Sciences, Department Economics.
    10. Fuentes, R. & Torregrosa-Martí, T. & Hernández-Sancho, F., 2017. "Productivity of wastewater treatment plants in the Valencia Region of Spain," Utilities Policy, Elsevier, vol. 46(C), pages 58-70.
    11. Marc Dijk & René Kemp & Pieter Valkering, 2013. "Incorporating social context and co-evolution in an innovation diffusion model—with an application to cleaner vehicles," Journal of Evolutionary Economics, Springer, vol. 23(2), pages 295-329, April.
    12. Gérard Weisbuch & Vincent Buskens & Luat Vuong, 2008. "Heterogeneity and increasing returns may drive socio-economic transitions," Computational and Mathematical Organization Theory, Springer, vol. 14(4), pages 376-390, December.
    13. Marc Baudry & Clément Bonnet, 2019. "Demand-Pull Instruments and the Development of Wind Power in Europe: A Counterfactual Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(2), pages 385-429, June.
    14. Popp, David & Hafner, Tamara & Johnstone, Nick, 2011. "Environmental policy vs. public pressure: Innovation and diffusion of alternative bleaching technologies in the pulp industry," Research Policy, Elsevier, vol. 40(9), pages 1253-1268.
    15. G'erard Weisbuch & Vincent Buskens & Luat Vuong, 2007. "Heterogeneity and Increasing Returns May Drive Socio-Economic Transitions," Papers 0706.1454, arXiv.org.
    16. Adam Jaffe & Richard Newell & Robert Stavins, 2002. "Environmental Policy and Technological Change," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 22(1), pages 41-70, June.
    17. Jaffe, Adam B. & Newell, Richard G. & Stavins, Robert N., 2003. "Chapter 11 Technological change and the environment," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 1, chapter 11, pages 461-516, Elsevier.
    18. Taanman, Mattijs & Groot, Arend de & Kemp, René & Verspagen, Bart, 2006. "Diffusion Paths for Micro Cogeneration Using Hydrogen in the Netherlands," MERIT Working Papers 2006-025, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    19. Herman R.J. Vollebergh, 2006. "Differential Impact of Environmental Policy Instruments on Technological Change: A Review of the Empirical Literature," Tinbergen Institute Discussion Papers 07-042/3, Tinbergen Institute.
    20. Yoram Krozer & Sharon Hophmayer-Tokich, 2017. "International Water and Sanitation Technology Transfers, Experiences from Europe," Technology Transfer and Entrepreneurship, Bentham Science Publishers, vol. 4(1), pages 54-61, April.

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