Policy Instruments to Stimulate Cleaner Technologies

Abstract

Investigation of the development of cleaner technologies: technology push, market pull, and appropriability condition seen as most important factors. Technology development can be enhanced by R & D subsidies and general support for education. Economic tools (Eco-taxes) are the preferred means for stimulating market pull; in some cases, other instruments are more appropriate. Demand for cleaner production method has to be stimulated by the government, demand for cleaner consumer products may be promoted through the market system itself. Appropriability conditions: patents, secrecy, technical leadership, learning curve effects, creation of strong market position, and scale economies. Different tools, such as standards, eco-taxes, subsidies, and information, are investigated as means to stimulate the development of cleaner technologies.