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Technological greening, eco-efficiency, and no-regret strategy

Author

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  • BRECHET, Thierry

    (Université catholique de Louvain, CORE and Chair Lhoist Berghamns in Environmental Economics and Management, B-1348 Louvain-la-Neuve, Belgium.)

  • LY, Sylvette

    (Université catholique de Louvain, CORE and Chair Lhoist Berghamns in Environmental Economics and Management, B-1348 Louvain-la-Neuve, Belgium.)

Abstract

In this paper we analyze the relationship between technological greening, eco-efficiency and no- regret strategies. By using a simple theoretical model, we evaluate the effects of technological greening on creation value, pollution level, and eco-efficiency. We show three contrasting effects of technological greening. First, technological greening may increase the pollution of a firm, and also of the whole industry. Second, the indicator of eco-efficiency can be misleading because it may improve in situations where pollution increases and/or profit decreases after technological greening. Third, technological greening that induces an improvement of the eco-efficiency indicator does not necessarily lead to a no-regret strategy. As a result, the indicator should not be used for decision making.

Suggested Citation

  • BRECHET, Thierry & LY, Sylvette, 2010. "Technological greening, eco-efficiency, and no-regret strategy," LIDAM Discussion Papers CORE 2010031, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2010031
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    References listed on IDEAS

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    1. Bréchet, Thierry & Jouvet, Pierre-André, 2009. "Why environmental management may yield no-regret pollution abatement options," Ecological Economics, Elsevier, vol. 68(6), pages 1770-1777, April.
    2. Thierry Bréchet & Philippe Michel, 2007. "Environmental performance and equilibrium," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 40(4), pages 1078-1099, November.
    3. Pierre-Philippe Combes & Thierry Mayer & Jacques-François Thisse, 2008. "Economic Geography: The Integration of Regions and Nations," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00311000, HAL.
    4. Bréchet, Thierry & Jouvet, Pierre-André, 2008. "Environmental innovation and the cost of pollution abatement revisited," Ecological Economics, Elsevier, vol. 65(2), pages 262-265, April.
    5. Huriot,Jean-Marie & Thisse,Jacques-François (ed.), 2009. "Economics of Cities," Cambridge Books, Cambridge University Press, number 9780521118279, January.
    6. BRECHET, Thierry & JOUVET, Pierre-André, 2006. "Environmental innovation and the cost of pollution abatement," LIDAM Discussion Papers CORE 2006040, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    technological greening; clean technology; eco-efficiency; environmental performance; rebound effect;
    All these keywords.

    JEL classification:

    • L8 - Industrial Organization - - Industry Studies: Services
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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