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Explaining adoption of end of pipe solutions and clean technologies

Author

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  • Hammar, Henrik

    (National Institute of Economic Research)

  • Löfgren, Åsa

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

Abstract

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.

Suggested Citation

  • Hammar, Henrik & Löfgren, Åsa, 2007. "Explaining adoption of end of pipe solutions and clean technologies," Working Papers 102, National Institute of Economic Research.
    • Handle: RePEc:hhs:nierwp:0102
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    References listed on IDEAS

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    Cited by:

    1. Allan, Corey & Jaffe, Adam B. & Sin, Isabelle, 2014. "Diffusion of Green Technology: A Survey," International Review of Environmental and Resource Economics, now publishers, vol. 7(1), pages 1-33, April.
    2. Löfgren, Åsa & Wråke, Markus & Hagberg, Tomas & Roth, Susanna, 2013. "The Effect of EU-ETS on Swedish Industry's Investment in Carbon Mitigating Technologies," Working Papers in Economics 565, University of Gothenburg, Department of Economics.
    3. Bonilla, Jorge & Coria, Jessica & Mohlin, Kristina & Sterner, Thomas, 2014. "Diffusion of NOx abatement technologies in Sweden," Working Papers in Economics 585, University of Gothenburg, Department of Economics.
    4. Thambiran, Tirusha & Diab, Roseanne D., 2011. "Air quality and climate change co-benefits for the industrial sector in Durban, South Africa," Energy Policy, Elsevier, vol. 39(10), pages 6658-6666, October.

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