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Content archived on 2024-04-19

The impact of parameters provided by environmental policy on the innovative behaviour in selected European countries

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The aim of the project was to get a better understanding of environmental innovations by using findings of applied innovation research. Based on the data available in the German and Dutch 1993 innovation surveys, the study has shown that neither in the context of current experience levies nor regulations prove to be clearly superior instruments. This is remarkable, but not particularly surprising since other empirical studies indicate that the individual advantages ascribed to market-based instruments must often be modified. This refers to both the given institutional environment based on the actual framework conditions, like technological opportunities, market demand or company specific aspects, as well as to the concrete form of those instruments. For example, dynamic standards could be set and have stronger innovation incentives than levies, which often become increasingly watered down in the political process and are often too low. The traditional regulation and emission-oriented environmental policy has consolidated the development of environmental technologies significantly in the direction of end-of-pipe-solutions. Here the dynamization of regulatory legislation in future, as well as market-based measures suited to the given problems would be desirable to achieve a technology shift towards more integrated solutions. Evidently the ideal environmental policy is based on a policy-mix in which the comparative advantages of individual instruments can be utilized and their individual disadvantages can be mitigated in the careful structuring and coordination of the various instruments.

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