Inducing environmental innovation is a significant challenge to policy-makers. Efforts to design public policies that address these issues are motivated by the fact that innovations can allow for improved environmental quality at lower cost. However, the relationship between environmental policy and technological innovation remains an area in which empirical evidence is scant. Increased attention should be paid to the design characteristics of public policies that are likely to affect the ‘type’ of innovation induced. The work presented in this book is brought together in five substantive chapters: environmental policy design characteristics and their role in inducing innovation, the role of public policies (including multilateral agreements) in encouraging transfer of environmental technologies, followed by three ‘sectoral’ studies of innovation in alternative fuel vehicles, solid waste management and recycling, and green (sustainable) chemistry. While particular focus has been placed on the role of environmental policy in bringing about the innovation documented, it is recognised that other factors play a key role in inducing innovation which has positive environmental implications.
Technological innovation can help realise environmental objectives in a less costly manner than would otherwise be the case. Thus, understanding the role that technological innovation can play in achieving environmental objectives is important for policy debates.
Technological innovation can lower the cost of achieving environmental objectives, so it is important to understand how environmental policy design and technological innovation are linked.
Green economy policies, if properly designed, deliver social and economic benefits by improving resource efficiency and inducing domestic companies to innovate, which may provide them with a competitive edge – first mover advantage – vis-à-vis their competitors.
Technological diffusion is recognized as a key pillar of climate change mitigation in environmental agreements.