The Adoption of Energy Efficiency Enhancing Technologies

Erik Verhoef and Peter Nijkamp

No 97-077/3, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: This paper analyses the adoption of energy-efficiency enhancing technologies by heterogeneous firms. The fact that energy use does not only cause external environmental costs through pollution, but also directly affects the profitability of the firm and hence its behaviour on input and output markets is taken for granted. It is demonstrated that the consideration of such market processes may have important implications for the efficiency of environmental policies concerned with energy use. The analysis focuses in particular on the efficiency of the market-led adoption and diffusion process under variouspolicy regimes. It is shown that the promotion of energy-efficiency enhancing technologies might have unexpected effects in that it could lead to an increase in energy use, while the use of energy taxes might actually reduce the attractiveness of energy-saving technologies.

Keywords: environmental regulation; energy; adoption of technologies; heterogeneous firms; externalities (search for similar items in EconPapers)
JEL-codes: D62 O33 Q48 (search for similar items in EconPapers)
Date: 1997-08-02
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:19970077

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