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Policy Design, Eco-innovation and Industrial Dynamics in an Agent-Based Model: An Illustration with the REACH Regulation

Nabila Arfaoui (), Eric Brouillat () and Maïder Saint-Jean

No 2013-22, GREDEG Working Papers from Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France

Abstract: This paper proposes an agent-based model to study the impact of European regulation REACH on industrial dynamics. This new regulation adopted in 2007 establishes a new philosophy in how to design environmental protection and health. For this reason, REACH appears as a privileged object of study to analyze the impact of regulation on innovation strategies of firms and the structure of market. Our model focuses on the interactions between clients and suppliers in order to take into account interdependencies in the heart of vertical relationships that are upset by the new principles introduced by REACH. The main contribution of this paper is to show, through an agent-based model, how different combinations of flexible and stringent instruments designed on REACH regulation (Extended Producer Responsibility, authorization process and restrictions) create the incentives and the constraints to shape market selection and innovation.

Keywords: policy design; technological substitution; agent-based model; REACH (search for similar items in EconPapers)
Pages: 42 pages
Date: 2013-06, Revised 2013-10
New Economics Papers: this item is included in nep-cmp and nep-ino
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http://www.gredeg.cnrs.fr/working-papers/GREDEG-WP-2013-22.pdf Revised version, 2013 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:gre:wpaper:2013-22

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