The many traps of green technology promotion

Thierry Bréchet and Sylvette Ly ()

Environmental Economics and Policy Studies, 2013, vol. 15, issue 1, 73-91

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. These are the many traps of technology greening promotion. Copyright Springer 2013

Keywords: Technological greening; Clean technology; Eco-efficiency; Environmental performance; Q55; Q48; Q58 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (6)

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DOI: 10.1007/s10018-012-0035-5

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