Inducing Greenhouse Gas Abating Innovations through Policy Packages

Ex Post Assessments from EU Sectors

This report assesses whether and to what extent energy and environmental policy instruments have been relevant forces behind the adoption of environmental innovations in the EU. The report takes a sectoral perspective that is theoretically based on neo Schumpeterian evolutionary theory to qualitatively investigate the factors that characterise the adoption of techno-organisational innovations aimed at enhancing energy efficiency and abating CO2 through interviews with industry representatives of key EU sectors. The interview-based analysis is complemented by econometric evidence on the policy drivers of eco-innovation at the sector level. The Industry’s views are integrated with a ‘stakeholder based’ analysis drawing upon on unions and policy makers’ views on the challenges faced by a greener economy. In total, the analysis provides bottom up and ex post based knowledge on both successful and undermining factors of the existent policy mix in EU countries, and provides consequent recommendations to ameliorate the (design of) the policy package.

The report finds that within the realm of CO2-related innovation adoption, environmental and energy policies have had a role in sustaining incremental techno-organisational solutions. Policy pressures appear more effective in energy intensive sectors, where market and policy effects are equally relevant. Sector but also national ‘systems of innovation’ are highlighted. This calls into question the effectiveness of ‘general policies’ that do not recognise sector and geographical differences in their design. Past innovation was driven to some extent by different levels of energy taxation by country and sector rather than by specific ‘carbon dioxide’ policies.

A positive factor, which even affects the ‘radicalness’ of current innovation in some sectors, is the widespread integration between technological and organisational innovations. Their complementarity is a key for future achievements and must be recognised in policy design. The report, however, also finds some negative aspects. This includes that important agents such as workers and unions have not been involved sufficiently and that in some sector situations the key wave of innovation seems to belong to the past.

Attachment: 

Citation: 

Mazzanti, Massimiliano; Antonioli, Davide, 2013. Inducing Greenhouse gases abatement through policy packages. Ex post assessments from EU sectors. WP2 Deliverable 2.7. Ferrara, University of Ferrara.

Funding: 

European Commission 

Authors: 

Massimiliano Mazzanti, University of Ferrara, Davide Antonioli, University of Ferrara

Year of publication: 

2014

Number of pages: 

111

Table of contents: 

1

Executive summary

4

2

Introduction and conceptual frameworks

6

3

The policy impact on environmental innovations: the survey and data

19

4

Empirical evidence by sectors

21

4.1

Energy

22

4.2

Chemical

28

4.3

Ceramics and cement

30

4.4

Coke and refinery

39

4.5

Paper and cardboard

43

4.6

Steel

49

5

Industrial relations, innovation and the green economy

53

6

Econometric analysis: the policy and market drivers of GHG related innovations

61

7

Conclusions

84

8

References

87

 

Annexes

94