The many traps of green technology promotion

Bréchet, Thierry;Ly, Sylvette
(2013) Environmental Economics and Policy Studies — Vol. 15, n° 1, p. 73-91 (2013)

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Authors
  • Bréchet, ThierryUCLouvain
    Author
  • Ly, SylvetteUCLouvain
    Author
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.
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Bréchet, T., & Ly, S. (2013). The many traps of green technology promotion. Environmental Economics and Policy Studies, 15(1), 73-91. https://doi.org/10.1007/s10018-012-0035-5 (Original work published 2013)